MNB allots HUF 100 bln at one-month EUR/HUF swap tender
jessica fejos
The National Bank of Hungary (MNB) allotted HUF 100 billion of one-month forint swaps against euros at a tender Monday, the central bank was reported as saying by Hungarian news agency MTI.
The MNB offered a total of EUR 160 million or HUF 50 bln for the tender; bids from the six participating banks came to EUR 407 mln (HUF 125 bln), of which the central bank accepted HUF 100 bln.
In the absence of maturing swaps, the additional liquidity the MNB introduced to the system through the tenders remained unchanged at HUF 400 bln.
The next swap expiry, of HUF 250 bln, will be on March 8.
The central bank introduced the tenders for the FX swaps last fall as a “fine-tuning instrument” for market liquidity, after it put a cap on placements in three-month deposits, its main sterilization instrument.
The MNB said it is continuously observing liquidity trends and is prepared to hold further tenders for the instruments if it sees “substantial and lasting” deviations.
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