Tender lowers ‘fine-tuning’ FX swaps


The National Bank of Hungary (MNB) on Monday injected HUF 184.08 billion liquidity into the Hungarian banking system through the latest "fine-tuning swap tender," by which it offers one-month, three-month and twelve-month forint swaps against euros, state news wire MTI reported.

The tender will lower the total stock by HUF 16 bln to HUF 1,405 bln as a combined HUF 200 bln of swaps - HUF 50 bln of one-month and HUF 150 bln of three-month swaps - expire on the value date of the tender on Wednesday.

The total stock of outlays will thus include HUF 109 bln of one-month, HUF 149 bln of three-month, HUF 173 bln of six-month and HUF 974 bln of twelve-month swaps from Wednesday.   

On Monday the offered amount for the one-month EUR/HUF FX swap tender was EUR 80 million (HUF 24.88 bln). Banksʼ bids totaled EUR 110 mln or HUF 34.2 bln, which the MNB accepted after raising its original offer.

For the three-month tender, the offered amount was EUR 80 mln or HUF 24.88 bln, but no bids were submitted.

For the twelve-month tender, the offered amount was EUR 482 mln or HUF 149.88 bln. Bid reached EUR 515 mln or HUF 160.14 bln, of which the MNB accepted the originally offered HUF 149.88 bln. 

Three banks participated in the one-month tender and six banks in the twelve-month tender.

The central bank introduced the tenders for the FX swaps last autumn as an instrument for managing market liquidity after it put a cap on placements in three-month deposits, its main sterilization instrument.  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.


Nagy: More Involvement in Insurance Market Banking

Nagy: More Involvement in Insurance Market

MPs Approve Tax Changes Parliament

MPs Approve Tax Changes

Home Loan Rates Climb Over 10% Residential

Home Loan Rates Climb Over 10%

Countries Exchange Experiences for Better Production of Catt... Conferences

Countries Exchange Experiences for Better Production of Catt...


Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
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.