The free liquidity of Hungary's banking sector was little changed in July from the previous month, similar to June. The stock of two-week National Bank of Hungary (MNB) bonds fell again, while the average stock of outstanding foreign exchange swaps and O/N deposits with the central bank grew, the MNB said on Thursday.
The average stock of outstanding two-week MNB zero-coupon bonds, the bank's main liquidity-management instrument, fell HUF 293 billion to HUF 3,768 billion in July after declining HUF 347 billion in June. The consecutive monthly declines follow steep rises of a combined HUF 1,091 billion between December and April.
The average stock of the O/N deposits rose HUF 47 billion to HUF 287 billion after rising HUF 122 billion in June. O/N deposits of the MNB have been rising each month since May.
The average stock of forex swaps rose HUF 205 billion after a rise of HUF 169 billion in June and reached HUF 462 billion.
The MNB's average stock of external assets rose HUF 116 billion after a HUF 386 billion rise in June, to HUF 10,188 billion. The average stock of external liabilities rose HUF 218 billion, almost the same as its June increase, to HUF 1,373 billion.
The average current account balance of the banking sector with the MNB in June exceed banks' combined reserve requirements by a slight HUF 0.9 billion.
Cash in circulation rose a slight HUF 28 billion to average HUF 2331 billion. (MTI-Econews)