MNB accepts HUF 200 bln of bids at FX swap tender
Image by Jessica Fejos
The National Bank of Hungary (MNB) held its first “fine-tuning swap tender” where it offered one-month forint swaps to inject liquidity into the market, Hungarian news agency MTI reported Monday.
The offered amount for the EUR/HUF FX swap tender was EUR 500 million, for which banks submitted EUR 1.73 billion of bids. Raising its original offer, the MNB accepted EUR 652 mln of the bids and thus raised the banking sectorʼs forint liquidity by around HUF 200 bln, with a converted spot EUR/HUF exchange rate of 306.56.
The MNB said 13 banks participated in the swap tender.
The central bank announced in September that it would design “fine-tuning instruments” to “manage considerable and persistent liquidity shocks,” releasing details of the plan in early October.
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