MNB allots HUF 150 bln at one-month EUR/HUF swap tender

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The National Bank of Hungary (MNB) allotted HUF 150 billion, or EUR 480 million, as the offered volume of one-month forint swaps against euros at a tender on Tuesday, the MNB said, according to Hungarian news agency MTI.

Bids from the five banks participating at the tender came to EUR 1.086 bln (HUF 340 bln).

Similar to the previous week, the tender will leave the additional liquidity the MNB introduced to the system through the tenders unchanged at HUF 550 bln, since EUR 485 mln or HUF 150 bln of one-month swaps will mature on April 19, the tenderʼs value date.

The next FX swap expiry, of HUF 100 bln in swaps, will be on May 3.

The central bank introduced the tenders for the FX swaps last autumn 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 continuously observes liquidity trends and stands prepared to hold further tenders for the instruments if it sees “substantial and lasting” deviations.

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