Cash in Circulation Increased in July

MNB

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The amount of cash in circulation increased even further in July, even though the Hungarian monetary deterioration reached its 24-year peak, according to the latest data of the National Bank of Hungary (MNB).

According to Central Bank data, the cash of Hungarians increased by HUF 20.4 billion in July, so households and businesses now have a total of 8.365 billion banknotes.

The accumulation of cash has accelerated significantly in recent years, in July 2020 the stock was still slightly below HUF 7 trillion while a year ago the indicator stood at HUF 7.4 tln.

The hoarding of cash is incomprehensible not only because of inflation, since cash as fiat currency can only depreciate, but also because cash is becoming more expensive, with the state bearing significant costs for maintenance.

The latest data from the central bank also shows that the average stock of foreign claims has also increased, by around HUF 1.05 tln.

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