19 November 2024, Budapest On 18 December, the Magyar Nemzeti Bank will hold year-end foreign exchange swap tender providing euro liquidity and two-week central bank discount bill auction, in addition to the regularly used instruments. The aim of the MNB’s active market presence is to strengthen the effectiveness of monetary policy transmission and to ensure stability in the FX swap market through supporting balance sheet adjustment of credit institutions.
The Magyar Nemzeti Bank (MNB) considers it crucial that short-term interest rates develop consistently with the level of interest rates determined by the Monetary Council in every sub-market and in every period. In line with its earlier practice, the central bank pays special attention to the development on the FX swap market at the end of the year. In order to ensure the effectiveness of monetary policy transmission, on 18 December 2024 the MNB will hold year-end foreign exchange swap tender providing euro liquidity and discount bill auction, both with a two-week maturity, in addition to its regular T/N FX swap tenders and one-week discount bill auctions.
The year-end foreign exchange swap tender with two-week maturity is scheduled for 18 December 2024, with a T+2 settlement, to value date of 20 December and a maturity of 3 January 2025. The year-end foreign exchange swap tender will be held at the same time as the regular T/N FX swap tender on 18 December 2024. The two-week central bank discount bill auction is also scheduled for 18 December 2024, with settlement at T+1, to value date of 19 December, and a maturity of 2 January 2025. The two-week central bank discount bill auction will be held between 9:00 am and 9:30 am on 18 December 2024, and the results will be released at 11:00 am.
The MNB will publish the tender notices with the details of the additional FX swap instrument and the central bank discount bill on its website and its new agency pages at 9:00 am on 18 December 2024. The MNB may use its international repo agreements for the provision of euro liquidity to finance its year-end FX swap tenders.
With regards to the public holidays in December 2024, the regularly used central bank discount bill will be announced differently from usual. The value date of the regular one-week central bank discount bill, to be auctioned on 18 December 2024, as the additional instruments, is Thursday 19 December 2024 and its maturity date is Tuesday 31 December 2024. In line with this, the last regular bill auction of the year will be held on 30 December 2024, with a value date of 31 December 2024 and a maturity date of Thursday 9 January 2025. The regular T/N FX swap tenders will be announced every working day as usual.
The Notice on the Terms and Conditions of the FX swap providing euro liquidity is available at the following link: Notice. Information on the central bank discount bill is available at the following link: Information sheet.
Important dates of the central bank tenders in December 2024
