In Hungary Forex-liquidity swap portfolio unchanged

After the regular weekly tender held on Monday, the stock of forex-liquidity swaps of the National Bank of Hungary (NBH) remained unchanged at HUF1,988bn, according to an official press release. The NBH provided HUF25bn of one-, three-, and six-month swaps each, which is equal to the amount of swaps expiring on Mar 13. We view the swap results as largely neutral in terms of the outlook on the monetary policy stance but we still believe that the NBH is likely to start the monetary policy normalization through the forex swap stock as of March.

The stock of forex-liquidity swaps will include HU 139.5bn of one-month, HUF273.9bn of three-month, HUF748bn of six-month and HUF826.7bn of twelve-month swaps after the latest tender.

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