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Free liquidity of banks little changed in June

The free liquidity of Hungary's banking sector was little changed in June from the previous month as the stock of two-week National Bank of Hungary (MNB) bonds fell, while the average stock of outstanding foreign exchange swaps and O/N deposits with the central bank grew, the MNB said.

The average stock of outstanding two-week MNB zero-coupon bonds, the bank's main liquidity-management instrument, fell HUF 347 billion to HUF 4,061 billion in June after declining HUF 47 billion in May. These 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 122 billion to HUF 244 billion in June after increasing HUF 60 billion in May and dropping HUF 148 billion in April.

The average stock of forex swaps rose HUF 169 billion to HUF 256 billion in June after falling HUF 12 billion in May.

The MNB's average stock of external assets rose HUF 386 billion to HUF 10,072 billion in June. The average stock of external liabilities rose 213 billion to HUF 1,155 billion.

The average current account balance of the banking sector with the MNB in June exceed banks' combined reserve requirements by HUF 4.4 billion. (MTI – Econews)