The average stock of banksʼ three-month deposits fell by HUF 333.2 billion to HUF 1,110.9 bln, in line with the volume limit introduced at tenders for the facility from October, as the MNB wants to squeeze money out of the central bank to commercial banks. In parallel, banks used far more extensively than before the MNBʼs one-day deposits as a tool of liquidity management: the average stock of one-day deposits rose a spectacular HUF 237.5 bln from October to HUF 313.3 bln.
The now less accessible three-month deposits pay the MNB base rate of 0.9% at present. Keeping money in MNB one-day deposits is, by contrast, a cost to banks, as the deposits carry interest of minus 0.05%.
The average stock of external assets rose HUF 296.4 bln. The big rise in the average stock reflected the carry-over effects of, on the one hand, the FX swaps introduced as part of the MNBʼs new forint liquidity fine-tuning instrument in late October, and on the other hand, the European Union transfers Hungary received in the second part of October, the MNB said.
October receipts of EU transfers also explain, among other things, the HUF 229.6 bln rise in the average stock of central government deposits in November.
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