Demand for MNB three-month FX swaps at five-month peak
Demand for three-month floating rate EUR/HUF swaps rose to €285m, the highest value since the middle of June at the National Bank of Hungary (MNB)’s weekly tender on Monday.
The MNB accepted all bids it received.
Demand rose from €55m a week earlier, and was more than double of the expiring volume. Demand for the three-month FX swaps reappeared on November 2 after practically no interest between September 12 and October 24.
The MNB offered, as usual, a maximum of €400m three-month swaps on Monday, and the swaps were offered at a maximum 336.65 swap points. With the €125m swaps expiring on Wednesday, the outstanding volume will rise to €640m on the November 16 settlement day, Econews calculated.
Wednesday’s rise will be the first significant increase of the stock since September 5, when it reached €1.48bn, its highest level since early February.
Demand for the facility rose for most of August parallel with the steep strengthening of the Swiss franc, in which a large part of the Hungarian retail loan stock is denominated, against the forint. It vanished after the Swiss National Bank announced a 1.20 CHF/€target early September, and reappeared at the beginning of November.
The MNB has been offering three-month floating-price EUR/HUF swaps since March 2009. It also has been operating one-day FX swaps daily since October 2008. The swap facilities, with two other ones already eliminated, were launched to ease Hungarian banks’ access to FX financing.
ADVERTISEMENT
Number of Road Accidents Involving Injury Edges Higher in Q3
Gov't Keeps Rate on General-purpose Student Loans at 7.99%
Hungarian Companies Participate in EU Cloud Computing Projec...
Budapest Police Seize Nearly 155 kg of Cocaine in Drug Bust
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.
