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Hungarian central bank to introduce forint swaps, deposit facility to manage liquidity

The Hungariancentral bank intends to introduce two new tools to improveliquidity management in the local interbank market, Reuters reported Oct. 7,citing two of the bank's economists.

In an article on Portfolio.hu, Pal Kolozsi and MihalyHoffmann said the central bank will use forint swaps to inject forints into themarket, and a one-week deposit facility to be used when there is an excess offorints.