The National Bank of Hungaryʼs (MNB) stock of FX swaps, which the central bank uses to pump liquidity into the banking sector, will remain unchanged at HUF 2.273 trillion after a weekly tender, Hungarian news agency MTI reports.
MNB allotted HUF 16.83 billion of one-month, HUF 16.83 bln of three-month, HUF 16.83 bln of six-month and HUF 16.83 bln of 12-month swaps against euros at the tender, practically level with the HUF 12.61 bln of one-month, HUF 23.31 bln of three-month, HUF 6.82 bln of six-month and HUF 24.73 bln of 12-months swaps maturing on January 8, the value date of the tender.
After payment and redemptions, the stock will include HUF 100 bln of one-month, HUF 393 bln of three-month, HUF 692 bln of six-month and HUF 1.088 tln of 12-month swaps.
MNB policymakers decided at a meeting in December to crowd out HUF 300 bln-500 bln from central bank instruments that pay the base rate in Q1 2020, unchanged from the level set for the previous quarter. The rate-setters take the crowd-out level into account when setting the stock of MNB swap instruments.