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MNB reports banking sector liquidity down in April

Forint liquidity of Hungaryʼs banking sector fell in April from a month earlier, which was mainly reflected in declines in the average stocks of one-day deposits, the National Bank of Hungary (MNB) said in a report on Monday based on preliminary data.   

The average stock of overnight deposits fell by HUF 119.0 billion to HUF 1.182 trillion, state news agency MTI reported based on figures from the MNB.

The end-of-month and average stock of three-month deposits, earlier the main sterilization instrument of the MNB, were stable in March at HUF 75 bln.  

The MNBʼs average stock of external assets was down by HUF 38.3 bln, mainly due to the firming of the forint, at HUF 7.826 tln. The stock of external assets stood at HUF 7.849 tln at the end of April, up HUF 43.5 bln from the start of the month.

Transactions increased the stock of external assets by HUF 19.4 bln, while revaluations and other factors raised it by HUF 24.1 bln.

Average external liabilities fell HUF 26.4 bln to HUF 760.4 bln in April. End-of-month external liabilities dropped HUF 11.2 bln to HUF 678.1 bln.

The average stock of central government deposits was up by HUF 81.8 bln at HUF 802.5 bln in April. The stock stood at HUF 785 bln at the end of the month, down by HUF 42.5 bln.   

In April, the total average stock of forint liquidity providing EUR/HUF swaps provided by the MNB rose by HUF 22 bln to HUF 1.553 tln.

The average stock of currency in circulation continued to rise during the month. It was up HUF 56.8 bln at HUF 5.343 tln.  

The monthly average of the banking sectorʼs current account balances with the MNB exceeded reserve requirements by HUF 24.1 bln, which is a similar amount as in the previous month. In April, reserve requirements amounted to HUF 206.3 bln.