Budapest, November 16 (MTI) – Hungary’s forint has become a part of the CLS system that settles payment instructions relating to underlying FX transactions, the company said on Monday.
The Hungarian unit is the first central and eastern European currency to be added to the CLS settlement system, and the 18th overall, they said.
“CLS … has started settling payment instructions in the Hungarian forint on behalf of its settlement members. While already one of the world’s top 25 most active currencies, we believe that the forint is a currency with significant growth potential,” CLS CEO David Puth said.
National Bank of Hungary governor Gyorgy Matolcsy welcomed the collaboration with CLS and noted that about 90 percent of trading in the Hungarian forint takes place internationally.
“The CLS model provides a proven and trusted model for safe and efficient settlement of FX transactions and reducing settlement risk will reinforce the stability of our financial system and benefit the wider economy,” he added.
The CLS system covers almost all of the global wholesale foreign exchange trading and now 18 currencies. During 2015 CLS has settled, on average, the equivalent of 4.8 trillion US dollars per day on behalf of its 64 settlement members and 18,000 indirect participants.