Hungarian people keep millions of HUF in cash in their households
The National Bank of Hungary revealed that the Hungarian nation keeps approximately 300 billion HUF (916 million EUR) in their households in cash, and their yields increased by almost 1500 billion HUF (4 billion EUR).
According to napi.hu, along with the increased amount of cash in Hungarian households, the rate of savings also increased and set a record; however, on the other hand, many residents ended up on a path to indebtedness.
The cumulative brutto assets of households were at a record level of 53,787 billion HUF (164 million EUR) at the end of the year. The debt revised net financial holdings also hit a new record of 44,730 billion HUF (136 billion EUR).
Theoretically, this means that one Hungarian household has approximately 10 million HUF of savings (30,000 EUR).
Of course, the divide between the rich and the poor continues. Many private bankers’ incomes increased rapidly, and they became wealthy in the past years, but, unfortunately, many people became poor. At the same time, the dates related to this phenomenon kept by the National Bank of Hungary can be misleading because many segments of this official file are not available for the public.
The amount of tangible wealth increased with great numbers last year. On the last day of 2018, approximately 4,800 billion HUF (15 million EUR) cash was in the property of Hungarian households which is a historical record. This means approximately 1.2 million HUF/household (3,600 EUR). Most of the money is in cash, but the Hungarian nation has 323 billion HUF of foreign currency as well (986 million EUR).
The amount of money kept in bank accounts also increased. The volumes of these in December 2018 were approximately 6,376 billion HUF (19 million EUR) which is a 21%-growth since 2017.
Mainly families hold their cash in HUF, but the numbers showed reserves in foreign currencies as well. The value of these savings is around 324 billion HUF (989 million EUR). Money on current accounts is also showing improvement.
There are also deposits held by households, but as the rate environment is close to zero and real market rates are also around zero, the banks are not paying any interest on the deposits.
To sum up, 14,500 billion HUF (44 million EUR) are on current accounts and deposit accounts, but this money has no output at all.