Are you sure?

Central bank foreign assets grow further in February

Gross foreign assets of the Hungary’s Central Bank (MNB) rose by HUF 667 billion (9.6%) in February after an increase of HUF 449 billion in January, preliminary statistical balance-sheet figures show.

The MNB's average stock of foreign assets rose HUF 3.221 billion (72.8%) in a year to HUF 7,646 billion from a year earlier, an increase that includes the effect of a 6.7% weakening of the forint's average rate to the euro in February and a 13.9% easing in twelve months.

Other assets of the central bank rose by HUF 31 billion in February, mostly from two-week and six-month lending.

Banks continued to place their excess liquidity in two-week MNB bills and overnight deposits. The current-account balance of commercial banks at the central bank stood at HUF 337.6 billion, just HUF 2.9 billion more than their mandatory reserve obligation. This amount fell from HUF 780 billion in November after the MNB reduced the reserve obligation from 5% to 2%.

Central bank deposits of the central government increased to HUF 1,978 billion, up a further HUF 147 billion from January, an increase that was also due partly to the forint's weakening. This amount has jumped from a level of around HUF 400 billion since last November after the government called down tranches from Hungary's €20 billion emergency credit line from the IMF, the EU and the World Bank. (MTI – Econews)