The launch of the independent central bank and the independent currency

After World War I, the inflation of the korona and peace treaties concluded with successor states required the introduction of a new currency. 1 gold korona equalled to 1,000 korona banknotes at the beginning of 1923, by the end of 1924, this ratio changed to 1 gold korona for 15,000 korona banknotes. Hungarian Royal State Note Issuing Institute was established temporarily under the supervison of the Minister of Finance in the building of the Austro–Hungarian Bank located at Szabadság tér, using its professionals and branch network. In the meantime, the liquidation of the joint central bank was pending. The introduction of the pengő and the establishment of the central bank reflected stability.

Magyar Nemzeti Bank was established in 1924 as a joint stock company with a share capital of 30 million gold koronas. Shares were available for subscription in the capital, in the countryside as well as in New York, London, Amsterdam, Zürich, and Stockholm from 28 April to 7 May. Despite the original objective, in addition to private individuals, financial institutions, industrial companies, investors and the Treasury subscribed almost 40 % more shares than originally planned.

The first president of the bank, Sándor Popovics held the position of chief governor of the Austro–Hungarian Bank between 1909 and 1918 and resigned when he was appointed to become a Minister of Finance. He presided over the Hungarian Royal State Note Issuing Institute between 1921 and 1924 and subsequently Magyar Nemzeti Bank until 1935. He also published a considerable number of professional articles.

Act V of 1924 provided for the establishment and patent of Magyar Nemzeti Bank. The bank was responsible for regulating money circulation and preserving the value of the currency. It took over the management of government debt, governed the loan transactions of the country and supervised foreign currency transactions. it operated as the sole issuer of banknotes until 1967 and subsequently that of banknotes and coins alike.

Act XXXV of 1925 provided for the introduction of the pengő. 1 pengő was equal to 12,500 koronas. An open tender was announced for the design of the fillérs and a call for tender for that of the banknotes. Even though the Act provided for gold coins, such coins were never circulated. 1, 2 and later 5 pengő coins were minted from silver. The new currency was considered to be a strong one for a long until it was devaluated during World War II and was replaced by the forint.