MNB swap stock remains unchanged after tender
The National Bank of Hungaryʼs (MNB) stock of FX swaps, which the central bank uses to pump liquidity into the banking sector, will remain unchanged at HUF 2.273 trillion after a weekly tender, Hungarian news agency MTI reports.
MNB allotted HUF 16.83 billion of one-month, HUF 16.83 bln of three-month, HUF 16.83 bln of six-month and HUF 16.83 bln of 12-month swaps against euros at the tender, practically level with the HUF 12.61 bln of one-month, HUF 23.31 bln of three-month, HUF 6.82 bln of six-month and HUF 24.73 bln of 12-months swaps maturing on January 8, the value date of the tender.
After payment and redemptions, the stock will include HUF 100 bln of one-month, HUF 393 bln of three-month, HUF 692 bln of six-month and HUF 1.088 tln of 12-month swaps.
MNB policymakers decided at a meeting in December to crowd out HUF 300 bln-500 bln from central bank instruments that pay the base rate in Q1 2020, unchanged from the level set for the previous quarter. The rate-setters take the crowd-out level into account when setting the stock of MNB swap instruments.
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