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Banking sector liquidity rose in May

Forint liquidity of Hungaryʼs banking sector rose in May from a month earlier, which was mainly reflected in an increase in the average stocks of overnight deposits, the National Bank of Hungary (MNB) said in a report on Wednesday based on preliminary data.   

The average stock of overnight deposits rose by HUF 75.5 billion to HUF 1,257.6 bln, state news wire MTI cited the MNB as saying.  The end-of-month and average stock of three-month deposits, the main sterilization instrument of the MNB, was stable in May at HUF 75 bln.

The central bankʼs average stock of external assets was up by HUF 483.2 bln at HUF 7,826 bln. The stock of external assets stood at HUF 8,650 bln at the end of May, up from HUF 7,849 bln at the start of the month. 

Transactions increased the stock of external assets by HUF 517 bln, and revaluations and other factors by a further HUF 283.4 bln. 

The average stock of central government deposits was up by HUF 148.8 bln at HUF 951.3 bln in May. The stock stood at HUF 1,396.3 bln at the end of the month, up from HUF 785 bln.

In May, the MNB concluded one, three, six and 12-month transactions with credit institutions at the EUR/HUF FX swap tenders providing forint liquidity. On balance, the total average stock of swaps rose over the month.   

The average stock of currency in circulation continued to rise during May, reaching HUF 5,444 bln by the end of the month.

The monthly average of the banking sectorʼs current account balances with the MNB exceeded reserve requirements by HUF 26.3 bln, which is a similar amount as in the previous month. In May, reserve requirements amounted to HUF 207 bln.