Tender leaves MNB FX swap stock unchanged
The stock of "fine-tuning" FX swaps of the National Bank of Hungary (MNB) will stay unchanged at HUF 1.486 trillion as the result of a tender yesterday, data released by the central bank and cited by state news wire MTI shows.
The MNB allocated HUF 24.9 billion (approximately EUR 80 million) of 12-month forint swaps against euros at the tender, in which six banks participated. The central bank did not invite bids for any of the other three maturities.
Three-month swaps with a value of HUF 25 bln will mature on February 21, the value date of the tender.
The tender will thus bring the composition of the stock to HUF 90 bln of three-month, HUF 48 bln of six-month, and HUF 1.348 tln 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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