Hungary's international reserves rose €120 million in the third quarter to €17.409 billion at the end of June, the latest quarterly report by the Central Bank (MNB) shows.
Factors increasing the reserves in the quarter included a €84 million rise in short-term forex deposit placed with the MNB, an €83 million inflow of EU transfers from the European Commission and, as the largest single effect, €260 million in the yield reached on the reserves in the period.
Debt management transactions of the Government Debt Management Agency (ÁKK) reduced the reserves in the three months by EUR 30m and payments related to MNB's own debt servicing decreased them by another EUR 13m. The main items reducing the reserves in the period were foreign currency payments by budget-funded institutions which totaled €264 million in Q3.
The state of Hungary issued no foreign bonds in the third quarter.
The MNB said it made no foreign currency conversions for the state on the market in Q3, similar to Q2. It is the bank's policy to exchange part of the government's net foreign exchange proceeds into forint on the market. These conversions, which reached €38 million in Q1, are made in a way that does not influence the market. (MTI – Econews)