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MNB allots HUF 200 bln at one-month EUR/HUF swap tender

The National Bank of Hungary (MNB) allotted HUF 200 billion of one-month forint swaps against euros at a tender yesterday, Hungarian news agency MTI has reported the central bank as saying.

Bids from the seven banks participating in the tender came to EUR 881 million (HUF 275 bln).

The central bank introduced the tenders for the FX swaps last fall as a “fine-tuning instrument” for market liquidity after it put a cap on placements in three-month deposits, its main sterilization instrument.

The MNB said it continuously observes liquidity trends and stands prepared to hold further tenders for the instruments if it sees “substantial and lasting” deviations.