CEE MARKETS-FX falls amid fresh banking sector fears

By Karol Badohal WARSAW, March 15 (Reuters) - Central European currencies fell on Wednesday, as fresh fears about the health of the global banking sector rocked financial markets. Regulators and financial executives have put efforts into easing contagion fears sparked by the collapse of Silicon Valley Bank (SVB), but markets were shaken again on Wednesday with Credit Suisse dropping over 20% after the lender's biggest shareholder, Saudi National Bank, said it could not go above 10% ownership for regulatory reasons. "The markets are in a risk-off mood definitely and it's related to fears about the health of the banking system... and in these circumstances there is a lot of reaction in terms of risk exposure," said Piotr Bartkiewicz, an economist at Pekao. "CEE currencies, including the forint which has always been quite vulnerable to this kind of influence, are losing a lot of ground." The Hungarian forint was the biggest faller in the region, softening 1.65% against the euro to 395.80. Markets in Budapest were closed for a holiday. The Czech crown fell 0.78% to 23.97, while the Polish zloty held up better than the regional peers, weakening 0.15% to 4.7125. "Once again the zloty is standing out against the region, which is undergoing a fairly significant discount — I mean the Hungarian forint and the Czech crown," Bank Millennium financial markets analyst Mateusz Sutowicz said. "The situation for the zloty in the coming days depends on core markets, what we will hear from Christine Lagarde during tomorrow's ECB sitting and next week's Fed sitting," he added.

CEE SNAPSHO AT

MARKETS T 1231

CET

CURRENC

IES

Latest Previou Daily Change s

bid close change in 2023 Czech <EURCZK= 23.9700 23.7820 -0.78% +0.78% crown >
Hungary <EURHUF= 395.800 389.250 -1.65% +0.92% forint > 0 0
Polish <EURPLN= 4.7125 4.7055 -0.15% -0.49% zloty >
Romanian <EURRON= 4.9220 4.9245 +0.05% +0.42% leu >
Croatian <EURHRK= 7.5330 7.5365 +0.05% +0.05% kuna >
Serbian <EURRSD= 117.240 117.300 +0.05% +0.05% dinar > 0 0
Note: calculated from 1800
daily CET
change

Latest Previou Daily Change s

close change in 2023 Prague 1332.85 1355.20 -1.65% +10.91 00 % Budapest 41807.2 41807.2 +0.00% -4.54% 9 9
Warsaw 1715.78 1755.30 -2.25% -4.25% Buchares 12355.7 12421.8 -0.53% +5.93% t 5 4
Ljubljan <.SBITOP 1186.46 1192.64 -0.52% +13.13 a > % Zagreb 2240.13 2258.01 -0.79% +752.5 1% Belgrade <.BELEX1 895.53 894.51 +0.11% +8.60% 5>
Sofia 626.07 627.46 -0.22% +4.09%

Yield Yield Spread Daily (bid) change vs Bund change in Czech spread Republic
2-year <CZ2YT=R 5.5100 -0.0620 +291bp +26bps R> s
5-year <CZ5YT=R 4.9110 -0.1190 +264bp +15bps R> s

<CZ10YT= 4.6220 -0.0560 +238bp +16bps 10-year RR> s
Poland
2-year <PL2YT=R 5.9820 -0.1240 +338bp +20bps R> s
5-year <PL5YT=R 6.1180 -0.0150 +384bp +26bps R> s

<PL10YT= 6.1980 0.0180 +396bp +23bps 10-year RR> s

FORWARD

3x6 6x9 9x12 3M interba nk Czech 7.11 6.77 6.19 7.19 Rep <PRIBOR=

>
Hungary 14.95 13.29 12.08 16.30 Poland 6.88 6.67 6.23 6.93 Note: are for ask
FRA prices
quotes

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(Reporting by Karol Badohal in Warsaw; Editing by Shilpi Majumdar)

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