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Banking sector liquidity up in July

Forint liquidity of Hungaryʼs banking sector rose in July from a month earlier, which was particularly reflected in an increase in the average stock of credit institutionsʼ overnight deposits, state news wire MTI noted, citing a report by the National Bank of Hungary (MNB).

According to preliminary data, the average stock of overnight deposits rose by HUF 34.9 billion to HUF 436.5 bln.

The MNBʼs average stock of external assets was up by HUF 124.3 bln at HUF 9.481 trillion. The stock of external assets stood at HUF 9.519 tln at the end of July, up from HUF 9.397 tln at the start of the month.

Transactions decreased the stock of external assets by HUF 76.4 bln, while revaluations and other factors raised it by HUF 198.6 bln.

The increase in average stocks partly reflects a decline in average forint exchange rates in July, and the carry-over effect of the increase in stocks at the end of June. The end-of-month stocks increased primarily due to the decline in forint exchange rates.

The average stock of central government deposits was down by HUF 41.2 bln at HUF 1.653 tln in July. The stock stood at HUF 1.756 tln at the end of the month, up from HUF 1.517 tln.

In July, the MNB concluded one, three, six and 12-month transactions with credit institutions at the EUR/HUF FX swap tenders providing forint liquidity.

The average stock of currency in circulation continued to rise during the month, reaching HUF 6.233 tln by the end of July.

The monthly average of the banking sectorʼs current account balances with the MNB exceeded reserve requirements by HUF 49.2 bln. In July reserve requirements amounted to HUF 231.3 bln.