Tender raises MNB FX swap stock to HUF 1,511 bln
The stock of "fine-tuning" FX swaps of the National Bank of Hungary (MNB) rose about HUF 25 bln to HUF 1,511 bln as the result of a tender on Monday, data released by the central bank show, as reported by state news wire MTI.
The MNB allotted HUF 24.7 bln (EUR 79 mln) of 12-month forint swaps against euros at the tender. As no other swaps are maturing on February 28, the value date of the tender, the total stock will climb to about HUF 1,511 bln.
The tender will bring the composition of the stock to HUF 90 bln of three-month, HUF 48 bln of six-month, and HUF 1,373 bln of 12-month swaps.
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, MTI recalled.
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