The National Bank of Hungary (MNB) received no bids for three-month EUR/HUF swaps at its weekly tender on Monday. The lack of interest came after four weeks of bids and allocation, of a combined €350 million.
The MNB offered the usual maximum of €400 million of these swaps at a maximum acceptable 293.38 swap points for expiry on December 22 on Monday. With no allocation or expiry, the outstanding volume will remain €1.167 billion on the September 22 settlement day, Econews calculated.
There were no redemptions in the fixed-price six-month EUR/HUF swap facility for which the MNB stopped to invite new bids as of July. The existing stock in 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)