MNB starts buying Chinese bonds
The National Bank of Hungary (MNB) yesterday announced a decision to invest "a small portion" of its foreign exchange reserves in Chinese government securities, Hungarian news agency MTI reported.
The measure was in line with a decision announced in April to gradually build a small Chinese bond portfolio "for economic policy and foreign currency asset diversification purposes".
"The first phase of the investment was conducted through an indirect technique in cooperation with the BIS (Bank for International Settlements, Basel) in May 2015," the MNB said yesterday, without revealing any further details.
"The investment does in no way jeopardize reserve adequacy, which is still regarded as high," it added.
In February, the MNB launched a Renminbi Program, in light of the increasing international role of the renminbi. One of the programʼs five pillars is the development of a foreign exchange reserve portfolio.
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