ADVERTISEMENT

MNB inernational reserves rise €447 mln in February

MNB

The National Bank of Hungaryʼs (MNB) international reserves stood at €31.715 billion at the end of February, up €447 million from the end of the previous month, preliminary data released today show, according to Hungarian news agency MTI.

The reserves were down €4.692 bln from €36.4 bln a year earlier. The reserves reached €38.2 bln at the end of January, the second highest level ever. 

There were no major foreign issues or expiries in February.

Of the main components of the reserves, other reserve assets, which contain financial derivatives, receivables on active repo transactions and loans to non-bank non-residents, dropped €566 mln last month to €870 mln after an almost €1.3 bln jump in January.

Currency reserves, which include currency, deposits and securities, rose €716 mln after a January drop of €320 mln, and reached a preliminary €29.6 bln at the end of February. Monetary gold reserves rose €11 mln to €112 mln and the reserve position at the International Monetary Fund rose €287 mln to €381 mln.

The reserves rose for the second month after a €2.8 bln drop sent them to a more than two-year low in December. FX government bond expiries, the expiries of central bank exchange rate swaps related to the conversion of retail FX loans and of swaps providing FX liquidity as well as cross-rate changes were the factors behind the December fall.

It is the MNBʼs stated policy to reduce the international reserves. The reduction is to go parallel with a decrease in the countryʼs short-term external debt that is without increasing the countryʼs vulnerability. Factors reducing the FX reserves include the MNBʼs self-financing program (a shift towards local banks and the population as well as to the HUF share in the financing of government debt) and the conversion of retail FX loans into forints.

ADVERTISEMENT

Impact of economic recovery on commercial property sector mu... Analysis

Impact of economic recovery on commercial property sector mu...

Parl't votes to phase out savings coops integration framewor... Parliament

Parl't votes to phase out savings coops integration framewor...

Roche Szolgáltató appoints P&C business partner lead Appointments

Roche Szolgáltató appoints P&C business partner lead

Budapest airport shuttle bus service expanded City

Budapest airport shuttle bus service expanded

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.