MNB accepts no bids at FX swap tender
MNB headquarters in Budapest
The National Bank of Hungary (MNB) accepted no bids at a weekly tender on Monday for FX swaps, a facility the central bank has used to pump liquidity into the banking sector, according to a report by state news wire MTI.
MNB's Monetary Council decided at a monthly policy meeting in September to "gradually phase out" the FX swap facility amid a tightening cycle, while "taking into account the developments in the swap market".
The tender on Monday was the first one held after the policy decision. Tenders did not take place late in September because they would have coincided with MNB's euro liquidity swaps tenders which the central bank holds quarterly to ease end-of-quarter swap market tensions.
Lenders bid for HUF 14.3 billion of three-month, HUF 24.9 bln of six-month and HUF 53.4 bln of 12-month swaps at the tender on Monday.
As HUF 55.3 bln of the swaps are maturing on October 6, total swap stock will fall below HUF 1.045 trillion. The stock will comprise HUF 68 bln of six-month swaps and HUF 976.6 bln of 12-month swaps.
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