The Magyar Nemzeti Bank will hold its regular end-of-quarter discount bill auctions and foreign exchange swap tenders in December

Budapest, November 14, 2022. In December 2022, the Magyar Nemzeti Bank (MNB) will hold its usual year-end foreign exchange swap tenders providing euro liquidity and discount bill auctions. The MNB aims to strengthen the efficiency of monetary transmission through an active market presence. The MNB will launch its year-end foreign exchange swap tenders without quantitative limits and may use its international repo agreements to finance them. In addition, the MNB will hold a 2-month deposit tender on 30 November 2022 to tie-up liquidity of the banking system, also with an aim to enhancing the efficiency of the monetary transmission.

In December, in order to address potential tensions in the foreign exchange swap market the MNB will hold year-end foreign exchange swap tenders providing euro liquidity, as well as discount bill auctions, to strengthen the efficiency of monetary transmission and thereby support the achievement of price stability. The MNB will launch the year-end foreign exchange swap tenders without quantitative limits and may use its international repo contracts providing euro liquidity to finance them. The T/N foreign exchange swap tenders, which are currently held on a daily basis, will remain unchanged during this period. The Notice for Terms and Conditions for the euro liquidity foreign exchange swap is available at the following link: Notice

According to the Monetary Council's decision of 16 November 2021, the MNB's monetary policy toolkit was supplemented by a discount bill with a maximum maturity of up to one month. The discount bill is available to the banks with a quantitative limit. The aim of the instrument is to mitigate potential end-of-quarter tensions in the foreign exchange swap market by providing targeted support to the banking system's balance sheet adjustment, thereby strengthening monetary transmission. The Information sheet of the central bank discount bill is available at the link below: Information sheet

The FX swap tenders will be held on 15 and 30 December 2022. The starting value date for the first tender is December 19, while the tender on December 30 has a value date on the same day. The discount bill auctions will take place on 5 December, 15 December and 22 December with T+2 value dates. The 15 December FX swap expires on 5 January 2023 and the 30 December FX swap and discount bills expire on 3 January 2023. The call for bids containing the parameters of the euro/forint swap tenders will be published by the MNB on the central bank's website and news agency pages at 9:00 on the tender days. The public offer of the central bank discount bill will be published 3 working days before the auction and the call for bids will be published one working day before the auction.

In addition, on 30 November 2022, the MNB will also hold a 2-month deposit tender to absorb free liquidity of the banking system, with a starting value date of 1 December, also aiming the strengthening the efficiency of monetary transmission. The Notice on Terms and Conditions for the long-term deposit is available at the following link: Notice