MNB allots HUF 150 bln at EUR/HUF swap tenders
The National Bank of Hungary (MNB) allotted HUF 150 billion of one- and 12-month forint swaps against euros at a tender yesterday, data released by the central bank shows, Hungarian news agency MTI has reported.
The MNB allotted HUF 100 bln of one-month swaps. Eight banks bid EUR 435 million (HUF 133 bln) in the tender.
The MNB also allotted HUF 50 bln of 12-month swaps. Bids from the six banks participating at the tender came to EUR 395 mln (HUF 121 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 sterilisation instrument.
The tender on Monday will raise the total stock of the swaps by HUF 50 bln to HUF 900 bln, including HUF 300 bln of one-month, HUF 300 bln of three-month, HUF 200 bln of six-month and HUF 100 bln of 12-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.
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.