Tender raises ‘fine-tuning’ FX swap stock to HUF 1.455 tln
Photo by Jessica Fejos
The National Bank of Hungary (MNB) injected a gross HUF 100 billion or net HUF 50 bln forint liquidity into the Hungarian banking system through its "fine-tuning swap tenders" yesterday, where it offered one-month, three-month and 12-month forint swaps against euros.
The tender will raise the total stock by HUF 50 bln to HUF 1.455 trillion as a combined HUF 50 bln of the swaps -HUF 25 bln of one-month and HUF 25 bln of three-month swaps -will expire on the value date of the tender on Wednesday.
From Wednesday, the total stock of outlays will include HUF 84 bln of one-month, HUF 125 bln of three-month, HUF 173 bln of six-month, and HUF 1.074 tln of 12-month swaps.
Yesterday, only HUF 2.9 bln bids arrived from banks for the offered HUF 25 bln (EUR 79 mln) of one-month EUR/HUF swaps, which the MNB refused. No bid was submitted for the similar volume of three-month swaps on offer.
The MNB accepted, in contrast, HUF 118 bln in bids for the HUF 100 bln (EUR 319 mln) 12-month swaps it offered and allocated. The MNB did not invite bids for the six-month maturity.
The central bank introduced the tenders for the FX swaps last fall as an instrument for managing 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.
Hungary Gasoline Prices 3% Over Regional Avg
Hungary to Address Future of Cohesion Policy During EU Presi...
Cordia’s Marina City Project Begins
Budapest Airport Wins 'Best Airport in Eastern Europe' for 1...
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.
