MNB allots HUF 200 bln at EUR/HUF swap tenders

Telco

jessica fejos

The National Bank of Hungary (MNB) allotted HUF 200 billion of forint swaps against euros at tenders on Monday, the central bank said, according to Hungarian news agency MTI.

The MNB allotted HUF 100 bln of one-month swaps and HUF 100 bln of three-month swaps. Bids from nine banks participating at the one-month swap tender came to EUR 1.141 bln (HUF 351 bln). Bids from six banks participating at the three-month swap tender reached EUR 1.165 bln (HUF 359 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 tenders yesterday will raise the total stock of 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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