6 September 2021
The Magyar Nemzeti Bank will hold foreign exchange swap tenders providing euro liquidity at the end of September 2021. The purpose of the active market presence of the MNB is managing the domestic effects of end-of-quarter tensions in international swap markets, thereby contributing to preserving the stability of monetary conditions and through this to maintaining price stability. The tenders will be announced without a quantitative limit. The Bank may use its international master repurchase agreements to finance the tenders.
Consistent with the Bank’s decision on 8 September 2020 and to manage the domestic effects of end-of-quarter tensions in international swap markets, thereby contributing to preserving the stability of monetary conditions and through this to maintaining price stability, the Magyar Nemzeti Bank will conduct foreign exchange swap tenders providing euro liquidity at the end of September 2021.
The tenders will take place on 22, 28, 29 and 30 September 2021. The first two tenders’ starting value date will be 24 September and 30 September 2021, their maturity date will be 1 October 2021 and 7 October 2021. The other two tenders’ starting value date will be 30 September 2021, the maturity date of them will be Friday, 1 October 2021. The tenders will be announced with no quantitative limit. The Bank may use its international master repurchase agreements providing euro liquidity to finance the swap instrument.
The announcement containing the parameters of EUR/HUF foreign exchange swap tenders of 22, 28 and 29 September 2021 will be published on the Bank’s and agencies’ websites at 8 am and that of the 30 September 2021 tender at 10 am on the day of the tender. The notice on the swap facility providing euro liquidity is available at the following link: Notice.
Dates of central bank FX swap and one-week-deposit tenders between 21 and 30 September 2021
In line with the practice of the last three quarters’ swap tenders providing forint liquidity will not be held between 20 and 30 September 2021. The MNB will return to the current practice of swap tenders providing forint liquidity from the week starting with 4 October 2021.
On 8 September 2020, the Monetary Council decided to use swap tenders providing central bank foreign currency liquidity, if necessary, in addition to the regular announcement of the swap facility providing forint liquidity, to improve the effectiveness of monetary policy transmission. At the end of September, December 2020 and March, June 2021 the MNB conducted four-four foreign exchange swap tenders providing euro liquidity to manage tensions in the swap market at the end of the quarters. In the tenders MNB accepted all bids, thus supporting the adjustment of the banking system and the stabilization of FX swap market at the end of the quarters.