MNB FX swap stock edges up after tender
The stock of "fine-tuning" FX swaps of the National Bank of Hungary (MNB) rose by a slight HUF 3 billion to HUF 1,528 bln as the result of a tender on Monday, show data released by the central bank and cited by state news agency MTI.
The MNB allotted HUF 6.25 bln of one-month swaps and HUF 14.70 bln of 12-month swaps against euros at the tender. However, the total stock will increase only slightly as HUF 15.64 bln of three-month swaps and HUF 3.1 bln of six-month swaps will mature on March 28, the value date of the tender.
The tender will bring the composition of the stock to HUF 6 bln of one-month, HUF 25 bln of three-month, HUF 45 bln of six-month, and HUF 1,452 bln of 12-month swaps.
The central bank introduced the tenders for the FX swaps in the autumn of 2016 as an instrument for managing market liquidity after it put a cap on placements in three-month deposits, its main sterilization instrument, MTI recalled.
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