MNB allots HUF 150 bln at fourth EUR/HUF FX-swap tender
The National Bank of Hungary (MNB) said on Monday it had injected another HUF 150 billion liquidity into the Hungarian banking system through its fourth “fine-tuning swap tender,” where it offered one-month forint swaps against euros, Hungarian news agency MTI reported Monday.
Including the previous tenders and upcoming expiries, the MNB has injected HUF 350 bln liquidity into the system through the new facility.
The offered amount for the EUR/HUF FX-swap tender was EUR 650 million (HUF 201 bln), with the maturity of the swaps at one month.
Banksʼ bids totaled EUR 1.36 bln (HUF 420 bln), of which the MNB accepted bids worth HUF 150 bln or EUR 485 million.
Eight banks participated at yesterday’s swap tender.
The central bank announced in late September that, related to the volume limit it set for its main liquidity management instrument, the three-month deposit starting October, it will operate, on a case-by-case basis, fine-tuning instruments – FX swap tenders reducing and increasing forint liquidity – to tackle considerable and persistent liquidity shocks.
The MNB said it will continue to watch the markets closely and will hold fine-tuning tenders if necessary.
SUPPORT THE BUDAPEST BUSINESS JOURNAL
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.