3 December 2021
The Magyar Nemzeti Bank will hold FX swap tenders providing euro liquidity and a short-term discount bill auction in December 2021. The purpose of the MNB’s active market presence is to manage the effects of end-of-quarter tensions in swap markets, and thereby to strengthen the efficiency of monetary transmission and maintain price stability. The FX swap tenders will be announced without a quantitative limit. The Bank may use its international master repurchase agreements to finance the tenders. The first FX swap tender will take place on 7 December 2021.
Consistent with the Bank’s decision taken earlier and in order to manage the effects of end-of-quarter tensions in swap markets, the Magyar Nemzeti Bank will conduct FX swap tenders providing euro liquidity and a short-term discount bill auction in December 2021, to strengthen the efficiency of monetary transmission and maintain price stability.
The FX swap 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 notice on the swap facility providing euro liquidity is available at the following link: Information notice.
Following the Monetary Council’s decision on 16 November 2021, the MNB’s monetary policy toolkit has been complemented by a discount bill with a maturity of up to one month, announced on a discretionary basis. The MNB will grant access to banks to the discount bill with a quantitative limit. The instrument aims to reduce tensions in the swap market building up at the end of each quarter and strengthen the efficiency of monetary transmission by providing targeted support to the banking system to deleverage. The Information Sheet of the central bank discount bill is available at the following link: Short-term discount bill.
The FX swap tenders will take place on 7, 21, 30 and 31 December 2021 and the discount bill auction will be held on 20 December. The starting value date of the first FX swap tender with a maturity of one month will be 9 December. The starting value date of both the central bank discount bill and the second FX swap tender with a maturity of two weeks will be 23 December and that of the last two FX swap tenders will be 31 December. The maturity date of all FX swap transactions and the discount bill will be 6 January 2022.
The announcement containing the parameters of EUR/HUF FX swap tenders of 7 December 2021 will be published on the Bank’s and news agencies’ websites at 8 am and that of the 21, 30 and 31 December 2021 tenders at 9 am on the day of the tender. The public offer of the central bank discount bill will be published on 15 December and call for bids will be published on 17 December.
Dates of central bank FX swap and discount bill tenders between 7 and 31 December 2021