The amount of forint-liquidity swaps will decline by HUF35.6bn to HUF1,873.6bn after the latest swap auction yesterday, the National Bank of Hungary (NBH) said. The gradual reduction of the stock of forint-liquidity swaps was a result of the MPC decision to reduce the amount of the crowded-out liquidity by HUF100bn to HUF300-500bn for Q2. As we reported, NBH deputy governor Marton Nagy expected the reduction in excess liquidity to be achieved with around HUF130bn decline in the forint-liquidity swap stock. The swap portfolio has declined by HUF115.4bn since the respective MPC decision in late March.
The NBH provided HUF12.2bn of six- and twelve-month swaps each on the regular weekly auction yesterday. It had invited bids for one- and three-month swaps as well but did not accept any bids. Out of the total swap portfolio, the one-month swaps amounted to HUF32.4bn of one-month swaps, HUF262bn of three-month swaps, HUF722.9bn of six-month swaps and HUF856.3bn of twelve-month swaps.