The Central Bank of Hungary completed its first fine-tuning swap tender. By Gabriella Kopházi-Tóth, Senior Relationship Manager, GSS Hungary
The Central Bank of Hungary has increased liquidity in the Hungarian banking system through a swap tender. The Central Bank of Hungary held its first fine-tuning FX swap tender mid-October – with the participation of 13 banks - as a result of which, Hungarian Forint (HUF) liquidity in the local banking system increased by HUF 200 billion.
In the frame of the tender the Central Bank of Hungary employed one month FX swap deals offering HUF liquidity against euro. For the HUF 150 billion (EUR 500 million) - offered by the Central Bank of Hungary - bids in the amount of EUR 1.73 billion were submitted to local banks. Finally the Central Bank of Hungary concluded deals in the amount of HUF 200 billion.
If current liquidity trends hold, the Central Bank of Hungary is ready to hold further so-called fine-tuning swap tenders.
Gabriella Kopházi-Tóth
Senior Relationship Manager
GSS Hungary