4.9 Gold and foreign exchange reserves of the central bank

Foreign currency receivables from and liabilities to credit institutions in a breakdown by remaining maturity

B/S line Remaining maturity

- within 1 year - within 1 to 5 years - over 5 years

II.3. Foreign currency receivables from credit institutions

- within 1 year - within 1 to 5 years - over 5 years

VII.2. Foreign currency liabilities to credit institutions II.3.-VII.2. Net foreign currency position Balance

31 Dec 2019 31 Dec 2020

HUF millions

Change

8 44,922 44,914 167 284 117 7,654 18,573 10,919

7,829 63,779 55,950

43,732 164,359 120,627 0 0 0

0 0 0

43,732 164,359 120,627 -35,903 -100,580 -64,677

B/S line Description

Gold reserve Reserve position in the IMF Foreign currency deposits Foreign currency securities Foreign currency repo transactions

II.1. Gold and foreign exchange reserves Balance

31 Dec 2019 31 Dec 2020

HUF millions

Change

454,851 570,550 115,699 121,965 128,159 6,194 1,517,954 3,161,631 1,643,677 7,234,099 8,412,142 1,178,043 31,900 1,457 -30,443

9,360,769 12,273,939 2,913,170

For statistical purposes, the MNB regularly publishes the amount of foreign exchange reserves. According to the statistical rules, foreign exchange reserves also include accrued interest, and consequently gold and foreign exchange reserves differ in amount according to the statistical and accounting rules.

Excluding accrued interest, foreign exchange reserves amounted to HUF 12,273.9 billion on 31 December 2020, exceeding the figure for end-2019 by HUF 2,913.2 billion. In the course of 2020, foreign exchange reserves were increased by EUR transfers from the European Commission, transactions concluded with international institutions and other foreign partners, and the debt management and other activities of the Government Debt Management Agency. The FX swaps tenders providing euro liquidity which were announced at the end of 2020 and the repurchase agreements drawn down both had a positive effect on the growth in reserves. The level of reserves was reduced by the overall effect of the net balance of the Hungarian State Treasury’s foreign currency inflows and payments mainly related to pandemic control measures, as well as by the maturity of the fine-tuning FX swaps providing forint liquidity to credit institutions. As a result of these factors, the stock of foreign exchange reserves denominated in euro rose by EUR 5.3 billion to EUR 33.7 billion by end-2020.

The end-2020 balance of foreign currency securities contained the securities which are managed by an external trustee based on a mandate amounting to HUF 871.9 billion (10.4 per cent in total).