The Hungarian Central Bank (MNB) said it allocated €35 million at its two-way rapid FX-swap tenders on Tuesday. The first tender held on Monday was unsuccessful as, according to market insiders, bids arrived only for the tender providing euro liquidity.
The MNB did not publish the volume of bids at either auction.
The NBH invited Tuesday's tenders with a maximum 2.27 swap points set for bids for euro liquidity (down from a 260 swap-point maximum on Monday) and with a minimum swap-point of 2.44 (compared to 3.15 on Monday) set for the bids applying to swap euros for forints.
Both tenders are for an overnight term, without pre-set volume, and evaluation rules ensure that the volumes accepted at the two tenders - held at the same time - will be the same.
The MNB changed the timing of the daily tenders, inviting them by 11am instead of 9am.
MNB governor András Simor announced on Friday that the NBH would introduce daily short-term euro-swap tenders from Monday to boost short-term foreign currency liquidity, acting as an intermediary between banks. The move came after a sharp weakening of the forint late on Thursday and Friday morning. (MTI – Econews)