MNB FX swap stock falls HUF 25 bln after tender
The stock of "fine-tuning" FX swaps of the National Bank of Hungary (MNB) will fall by about HUF 25 billion to HUF 1,586 bln as the result of a tender on Monday, data released by the central bank show, as reported by state news wire MTI.
The MNB allocated HUF 49.8 bln (EUR 161 mln) of twelve-month forint swaps against euros at the tender.
One-month swaps with a value of HUF 74.9 bln will mature on January 31, the value date of the tender, reducing the stock of one-month swaps to zero.
The tender thus brings the composition of the stock to HUF 215 bln of three-month, HUF 98 bln of six-month, and HUF 1,273 bln of twelve-month swaps, the MNB said.
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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