MNB allots HUF 100 bln at one-month EUR/HUF swap tender
The National Bank of Hungary (MNB) allotted HUF 100 billion of one-month forint swaps against euros at a tender on Tuesday, the central bank said, as reported by Hungarian news agency MTI.
Bids from ten banks participating at the tender came to EUR 1.292 bln (HUF 397 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.
Yesterday’s tender is expected to raise the total stock of the swaps to HUF 850 bln, including HUF 400 bln of one-month, HUF 300 bln of three-month, HUF 100 bln of six-month, and HUF 50 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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