The National Bank of Hungary (MNB) received no bids for its three-month euro/forint swaps at its weekly tender on Monday. In line with the rules on the facility, the MNB stopped inviting bids in the six-month euro/forint swap facility as of July.
The previous five tenders for the three-month floating-rate euro/forint swaps, offered weekly on Mondays, all attracted interest although demand gradually subsided from €310 million on June 28 to €32 million on July 26. The MNB offered a maximum of €400 million of these swaps at a maximum acceptable 294.46 swap points for expiry on November 3 on Monday. With €100 million expiring on August 4, the outstanding volume will drop to €1.592 billion on the August 4 settlement day, Econews calculated.
The fixed-price six-month euro/forint facility has no longer been available for new bids from the start of July in order to allow the existing stock to run out as planned by the end of this year. The facility last saw bids and allocation on May 25. The outstanding volume will drop by €6 million to €181 million on Wednesday, Econews calculated.
The MNB started to offer three-month floating-price euro/forint swaps and six-month fixed-price euro/forint swaps to banks weekly in March 2009. It also offered one-week Swiss franc/euro 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)