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MNB allocates €150 mln at two-way O/N FX swap tenders

  The National Bank of Hungary (MNB) allocated €150 million at its two-way rapid overnight FX-swap tenders on Tuesday. Evaluation rules ensure the same accepted amount at the two tenders held daily.


Similar to the previous days, the bank decided on the accepted volume of the two-way FX swap tenders to ensure an at least 0.18 swap-point spread between the accepted bids with the highest swap points in the case of the swaps providing euro liquidity and the lowest swap points in accepted bids providing forint liquidity. The MNB does not publish the volume of bids it received at either of the two-way auctions.

The MNB’s new O/N FX swap facility, in which the provides additional euro liquidity to banks from a European Central Bank-backed repo facility, was available to banks at a fixed 1.04 swap points on Tuesday, raised from 0.81 points on Monday. The bank does not announce a limit on volume on the facility neither provides data on its use.

The MNB introduced the two-way daily O/N FX swap tenders October 13 to support narrowed interbank market foreign currency liquidity. The same accepted amount reflects that in the case of this new instrument the MNB acts as an intermediary among banks, without providing additional liquidity either way through the tenders.

In contrast, it provides additional euro liquidity through the ECB-backed facility, available daily, it launched on October 16. (MTI-Econews)