Tender raises ‘fine-tuning’ FX swap stock to HUF 1,720 bln
Image by Jessica Fejos
The National Bank of Hungary (MNB) on Monday injected HUF 150 billion forint liquidity into the Hungarian banking system through one of its "fine-tuning swap tenders," where it offers one-month, three-month, six-month and 12-month forint swaps against euros.
The tender will raise the total stock by HUF 140 bln to HUF 1,720 bln as HUF 10 bln of one-month swaps will expire on the value date of the tenders, state news wire MTI reported.
The total stock of outlays will thus include from Wednesday HUF 79 bln of one-month, HUF 50 bln of three-month, HUF 50 bln of six-month, and HUF 1,541 bln of 12-month swaps.
On Monday the offered amount for the one-month EUR/HUF FX swap tender was EUR 79 mln, or HUF 24.80 bln. Banksʼ bids totaled EUR 246 mln, or HUF 77.22 bln, of which the MNB accepted HUF 49.91 bln.
For the three-month tender, the offered amount was HUF 24.80 bln, with bids coming in at HUF 97.31 bln, of which the MNB accepted HUF 49.91 bln.
At the six-month tender, the HUF 24.80 bln offered amount received HUF 182.06 bln of bids, and the accepted amount reached the offered HUF 24.80 bln.
For the 12-month tender, the offered amount was HUF 24.80 bln. Banksʼ bids totaled EUR 600 mln, or HUF 188.33 bln, of which the MNB accepted the offered HUF 24.80 bln.
Six banks participated at the one-month tender, three banks at the three-month tender, and five banks each at the six and 12-month tenders.
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.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.