MNB O/N Deposits Soak up Banking Sector Liquidity in January

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The average stock of O/N deposits allocated by the National Bank of Hungary (MNB) at daily quick tenders rose by HUF 1.998 trillion to HUF 6.647 tln in January, data released by the central bank on Tuesday show.

The increase in average O/N deposit stock indicates a rise in forint liquidity of the banking sector, MNB said.

MNB launched daily tenders for fixed-rate O/N deposits, at a rate of 18%, well over the 13% base rate, in mid-October.

The average stock of bonds issued by MNB fell by HUF 612 bln to HUF 89 bln in January.

The average stock of variable-rate deposits rose by HUF 62 bln to HUF 2.197 tln.

The January data show banks' had HUF 2.45 tln on their reserve accounts during the month, down from HUF 2.801 tln in December.

Currency in circulation fell by HUF 197 bln to HUF 8.215 tln in January, consistent with start-of-year seasonality, MNB said.

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