Tender reduces MNB FX swap stock by HUF 25 bln
The stock of "fine-tuning" FX swaps of the National Bank of Hungary (MNB) will fall by about HUF 25 bln to HUF 1,486 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 25.0 bln (EUR 80 million) of twelve-month forint swaps against euros at the tender.
Three-month swaps with a value of HUF 49.9 bln will mature on February 14, the value date of the tender.
The tender will thus bring the composition of the stock to HUF 115 bln of three-month, HUF 48 bln of six-month, and HUF 1,323 bln of twelve-month swaps.
The MNB had also offered HUF 25.0 bln of one-month swaps, but made no allocation after bids came to just EUR 100 mln (HUF 31.2 bln).
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.
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