Budapest, 30 September 2020. FX swap tenders held by Magyar Nemzeti Bank in September have effectively smoothed quarter-end market tensions, hence no bid have been received on today’s tender. The MNB closely monitors market developments and stands ready to hold FX swap tenders to provide euro liquidity if deems appropriate.

The MNB had allocated almost 1,1 billion euro liquidity on four FX-swap tenders held between 18 September 2020 and 30 September 2020. Due to the active presence of MNB, unlike the previous quarter-ends, actually no tensions can be detected in the swap market. Similarly to yesterday’s FX swap tender, MNB has not received any bids from the banks on today’s tender either.

The MNB closely monitors developments on the swap market focusing particularly on quarter-end periods. MNB is ready to hold FX swap tenders because it is one of its key priority that short-term rates in every sub-market at all times should be formed consistently with the level of short-term rates deemed optimal by the Monetary Council.

According to the earlier announcements and the regular practices, the next forint liquidity swap tender will take place on October 5, 2020, with a value date of October 7.