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Banking sector liquidity rose in November - MNB

Forint liquidity of Hungaryʼs banking sector rose in November from a month earlier, which was mainly reflected in an increase in the average stock of credit institutionsʼ overnight deposits, the National Bank of Hungary (MNB) said in a report on Wednesday, Hungarian news agency MTI reports.

According to preliminary data the average stock of overnight deposits rose by HUF 275.1 billion to HUF 595 bln.

The MNBʼs average stock of external assets was up by HUF 280.4 bln at HUF 10.238 trillion. The stock of external assets stood at HUF 10.485 tln at the end of November, up from HUF 9.885 tln at the start of the month.

Transactions increased the stock of external assets by HUF 409.6 bln and revaluations and other factors raised it by HUF 190.5 bln.

The rise in the average and end-of-month stock of external assets reflected the depreciation of the forint exchange rate and the expansion in the stock of EUR/HUF swaps providing forint liquidity. Transfers received from the EU also contributed to the rise in the end-of-month stocks.

The average stock of central government deposits was up by HUF 30.6 bln at approximately HUF 1.545 tln in November. The stock stood at HUF 1.695 tln at the end of the month, up from HUF 1.447 tln.

The average stock of currency in circulation continued to rise during the month and reached about HUF 6.477 tln by the end of it.

The monthly average of the banking sectorʼs current account balances with the MNB exceeded reserve requirements by HUF 43.1 bln. In November reserve requirements amounted to HUF 231.9 bln.