MNB international reserves fall on swaps related to FX mortgage phase out

MNB

The National Bank of Hungaryʼs (MNB) International Reserves stood at €34.760 bln at the end of June, down €2.388 bln from the end of the previous month, according to fresh data from MNB.

The MNB noted that €1.4 bln of the big decline can be explained by swap contracts related to the phase out of retail FX mortgage loans falling due or being closed before expiry with resident credit institutions.

The activity of the Government Debt Management Agency (ÁKK) added a further €300 mln to the decrease and the sale of foreign exchange to the Hungarian Development Bank (MFB) linked to the purchase of Budapest Bank, accounted for €600 mln of the drop, the central bank said.

The state acquired Budapest Bank at the end of June for $700 mln.

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