MNB allots combined HUF 150 bln at EUR/HUF FX-swap tenders
The National Bank of Hungary (MNB) said yesterday it had injected another HUF 150 billion forint liquidity into the Hungarian banking system through its "fine-tuning swap tenders" where it offered one-month and sixth-month forint swaps against euros, Hungarian news agency MTI reported.
The offered amount for the one-month EUR/HUF FX swap tender was EUR 320 million (HUF 99.9 bln) and the maturity of the swaps is one month.
Banksʼ bids totalled EUR 1.12 bln (or HUF 350 bln) of which the MNB accepted bids worth HUF 99.9 bln.
For the sixth-month tender the offered amount was EUR 160 mln (HUF 49.94 bln). Bids reached EUR 1.01 bln (HUF 317.14 bln) and the MNB allotted the amount in line with its original offer.
Eight banks participated at both the swap tenders.
Including the previous tenders and expiries, the MNB has injected HUF 600 bln liquidity in the system through its EUR/HUF FX swap facility. The allotted amount of one-month swaps is at HUF 450 bln, the amount of three-month swaps is HUF 100 bln and the amount of six-month swaps is HUF 50 bln.
The central bank announced in the fall that starting October 2016, related to the volume limit it set to the three-month deposit, its main liquidity management instrument, it will operate fine-tuning instruments, such as FX swap tenders reducing and increasing forint liquidity, on a case-by-case basis to tackle considerable and persistent liquidity shocks.
The MNB said it will continue to watch the markets closely and will hold fine-tuning tenders whenever it deems it necessary.
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.