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MNB three-month FX swap tender continues without bids

The National Bank of Hungary (MNB) did not receive any bids for three-month floating rate EUR/HUF swaps at its weekly tender on Monday. The tender was the second in a row which went without bids. There was steady demand for the facility between December 27 and February 7.

The MNB offered the usual maximum of €400m three-month swaps at maximum acceptable 295.81 swap points for expiry on May 25. With €150 million in expiries, the outstanding volume will drop to €1.059 billion on the February 23 settlement day, 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. The fixed-price six-month EUR/HUF swap facility for which the MNB stopped to invite new bids as planned last July, ran out on November 24, 2010. The bank 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.