MNB FX swap stock falls HUF 75 bln after tender

Telco

The stock of "fine-tuning" FX swaps of the National Bank of Hungary (MNB) will fall by almost HUF 75 billion to HUF 1,511 bln as the result of a tender on Monday, data from the central bank show, as reported by state news wire MTI.   

The MNB allocated HUF 24.8 bln (EUR 161 mln) at the tender, the announced volume of twelve-month forint swaps against euros, after receiving bids for HUF 212.3 bln. 

The central bank refused the HUF 3 bln bids it received for the HUF 24.8 bln one-month swaps it had offered. It did not tender any three or six-month swaps.

There was one bidding bank at the one-month and six bidders at the twelve-month tender, noted state news wire MTI.

Three-month swaps with a value of HUF 49.8 bln and six-month swaps with a value of HUF 49.9 bln will mature on January 31, the value date of the tender.

The tender thus brings the composition of the stock to HUF 165 bln of three-month, HUF 48 bln of six-month, and HUF 1,298 bln of twelve-month swaps, the MNB said.

The central bank introduced the tenders for the FX swaps in the autumn of 2016 as an instrument for managing market liquidity after it put a cap on placements in three-month deposits, its main sterilization instrument.

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