MNB allots HUF 200 bln at EUR/HUF swap tenders


The National Bank of Hungary (MNB) allotted HUF 100 billion (EUR 324 mln) of one-month forint swaps against euros and another HUF 100 bln of three-month swaps at tenders held on Monday, the central bank said.

Bids from banks totaled HUF 134 bln for the one-month swaps and HUF 190 bln for the three-month terms, of which the MNB accepted the originally offered HUF 100 bln of each. Five banks participated in each of the two tenders.

The central bank introduced the tenders for the FX swaps last autumn as a "fine-tuning instrument" for market liquidity after it put a cap on placements in three-month deposits, its main sterilization instrument.

Due to expiries, Mondayʼs tenders leave the total stock of the fine-tuning FX swaps unchanged at HUF 850 bln. The stock will include, as before, HUF 400 bln of one-month, HUF 300 bln of three-month, HUF 100 bln of six-month, and HUF 50 bln of twelve-month swaps.

The MNB said it continuously observes liquidity trends and stands prepared to hold further tenders for the instruments if it sees "substantial and lasting" deviations.


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