MNB: Forint liquidity of banking sector decreases in February
Forint liquidity of Hungary's banking sector shrank in February as compared to a month earlier, evidenced by a small decrease in the average stock of two-week deposits, the National Bank of Hungary said in a report today.
The average stock of two-week deposits, the central bank's main sterilization instrument, fell by HUF 162.2 bln to HUF 5,145.1 bln, the report shows.
The average stock of external assets decreased by HUF 400.2 bln to HUF 11.558 trillion due to a maturing foreign currency-denominated government bond and exchange rate changes, the MNB said.
The average stock of central government deposits fell by HUF 106.1 bln to HUF 1.4778 trillion. The stock stood at HUF 1.461 trillion at the end of February compared to HUF 2.182 trillion at the start of the month. The MNB explained the decrease with the repayment of a $1.5 bln dollar bond during the month.
The monthly average of the banking sector's current account balances with the MNB exceeded reserve requirements by HUF 7.1 bln, which the central bank termed "moderate" compared to the total requirement of HUF 502.5 bln.
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