ADVERTISEMENT

Demand for three-month FX swaps drops to €40m at central bank tender

Deals

The National Bank of Hungary (MNB) received and accepted €40m bids for floating-rate three month EUR/HUF swaps at its regular weekly tender on Monday.

Demand and allocation dropped from €155m one week earlier.

The MNB offered the usual €400m floating-rate three month EUR/HUF swaps at a maximum price of 346.02 swap points, which was also the only price in bids and allocation. With €35m expiring, the stock outstanding of the three-month EUR/HUF swaps will rise to €1.36bn on the January 11 settlement day.

The €290m EUR/HUF one-week swaps the MNB allocated on December 27 in a one-off tender held to help banks to manage their foreign-exchange liquidity at the end of the year expired already on January 4.

Demand for fx swaps tends to be seasonally high by the end of the year, and has been also increased by a government scheme in which retail fx mortgage borrowers can fully repay their loans at discounted exchange rates.

The MNB operates two EUR/HUF swap facilities, a one-day one operated daily and the three-month one once a week on Mondays.

ADVERTISEMENT

OECD projects Hungary GDP growth will slow to 5% in 2022 Analysis

OECD projects Hungary GDP growth will slow to 5% in 2022

Lawmakers approve residency permit for digital nomads Parliament

Lawmakers approve residency permit for digital nomads

The strongest move - Morgan Stanley Hungary head and Chess F... Podcasts

The strongest move - Morgan Stanley Hungary head and Chess F...

ITM, capital gov't agree on support for public transport City

ITM, capital gov't agree on support for public transport

SUPPORT THE BUDAPEST BUSINESS JOURNAL

Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.