MNB allots HUF 200 bln at third EUR/HUF FX swap tender
The National Bank of Hungary (MNB) allotted HUF 200 billion of one-month forint swaps against euros at a tender on Monday, according to Hungarian news agency MTI.
The tender was the third of its kind for the “fine-tuning instrument” that the central bank introduced in the autumn to manage market liquidity after it put a cap on placements in three-month deposits, its main sterilization instrument.
At EUR 646 million, the allotment was just under the EUR 650 mln maximum offer and practically level with the allotments in the first two tenders held on October 19 and 26. Lendersʼ bids came to HUF 355 bln (EUR 1.148 bln), under the offers in the first two tenders.
“The MNB continues to monitor liquidity trends on an ongoing basis and is prepared to hold further fine-tuning tenders if it sees substantial and sustained deviations,” the central bank said after the tender.
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.