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MNB allocates €205m in three-month FX swaps at Monday tender

The National Bank of Hungary (MNB) received and accepted €205 million bids for three-month EUR/HUF swaps at its weekly tender on Tuesday. It allocated an unusually high volume of €340 million last Monday.

The MNB offered the usual maximum of €400m of these swaps at a maximum acceptable 267.28 swap points for expiry on February 2, 2011 on Tuesday. Accepted bids were at an average 267.01 swap points, ranging from 266.00 to 267.28. With no expiry, the outstanding volume will rise to €910 million on the November 3 settlement day, Econews calculated.

There will be no redemptions in the fixed-price six-month EUR/HUF swap facility for which the MNB stopped to invite new bids as of July in order to allow the facility will run out as planned by the end of this year. The facility last saw bids and allocation on May 25. With no expiry, the outstanding volume will remain €181 million on Wednesday, Econews calculated.

The MNB started to offer three-month floating-price EUR/HUF swaps and six-month fixed-price EUR/HUF swaps to banks weekly in March 2009. It also offered one-week CHF/EUR swaps weekly between February 2009 and January 2010. The bank has been operating one-day FX swaps daily since October 2008. The swap facilities were launched to ease Hungarian banks' access to FX financing. (MTI-Econews)