MNB allots HUF 100 bln at EUR/HUF swap tenders
The National Bank of Hungary (MNB) allotted HUF 100 billion of one and three-month forint swaps against euros at a tender on Monday, state news wire MTI reported.
The MNB allotted HUF 50 bln of one-month swaps. Three banks bid EUR 170 million (HUF 52 bln) in the tender.
The central bank also allotted HUF 50 bln of three-month swaps. Bids from the four banks participating at the tender came to EUR 310 mln (HUF 94 bln).
The central bank introduced the tenders for the FX swaps last autumn as a "fine-tuning instrument" for market liquidity after it put a cap on placements in three-month deposits, its main sterilization instrument.
The tender on Monday keeps the total stock of the swaps level at HUF 900 bln, including HUF 250 bln of one-month, HUF 350 bln of three-month, HUF 200 bln of six-month, and HUF 100 bln of twelve-month swaps.
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.
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