MNB allots HUF 25 bln at EUR/HUF swap tender
The National Bank of Hungary (MNB) allotted HUF 25 billion of one-month forint swaps against euros at a tender on Monday, central bank data cited by state news wire MTI show.
A single bank bid EUR 80 million (HUF 25 bln) in the tender. The MNB had offered HUF 50 bln of the one-month swaps, as well as HUF 50 bln of three-month swaps, but no bids were received for the latter.
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 brings the total stock of the swaps to HUF 900 bln, including HUF 75 bln of one-month, HUF 425 bln of three-month, HUF 250 bln of six-month and HUF 150 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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.