HUF liquidity of the banking sector declined in August, data from the National Bank of Hungary’s (NBH) balance sheet showed. The decline in liquidity was reflected in lower overnight deposits of banks in the NBH and other bank deposits were slightly down as well. The NBH fully rolled over the forex swaps providing forint liquidity, which expired during the month. The average stock of these swaps still declined slightly to HUF2,044.9bn but remained very close to the record-high levels from the previous two months. Banks’ excess reserves remained somewhat higher than usual, amounting to HUF20.1bn on average in August. The total reserve requirement stood at HUF216.2bn for the month.
The average stock of the NBH external assets amounted to HUF8,547.9bn in August and rose by 0.8% m/m. The NBH attributed the increase in the external assets, both in terms of average monthly stocks and the end-of-month stocks, to the depreciation of the forint exchange rate.