No demand for Hungary central bank three-month FX swaps at tender
The National Bank of Hungary (MNB) received no bids for floating-rate three month EUR/HUF swaps at its regular weekly tender on Monday. The previous tender on March 12 attracted €30 million bids after no demand in the preceding four weeks.
The MNB offered the usual €400 million floating-rate three month EUR/HUF swaps at a maximum price of 284.11 swap points.
With €160 million expiring on the March 21 settlement day, the stock outstanding of the three-month EUR/HUF swaps will drop to €1.250 billion on Wednesday.
Interest in the facility was high, reflecting partly a seasonal year-end liquidity squeeze, in December and January, and the stock outstanding of the swaps reached an all-time high of €2.345 billion on January 25. The stock was below the respective one-year earlier levels in December but surpassed them in January.
The MNB operates two EUR/HUF swap facilities to banks, a one-day one operated daily and the three-month one once a week on Mondays.
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