Budapest, 21 December 2020. In today's FX swap tender providing euro liquidity, the Magyar Nemzeti Bank (MNB) accepted all bids in the amount of EUR 1065 million (HUF 381.06 billion) with a maturity of 7 January 2021.

In accordance with the decision of the Monetary Council of 8 September 2020 and because it is one of MNB’s 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, the Magyar Nemzeti Bank held an FX swap tender providing euro liquidity. Six banks participated in the competitive price tender. Banks placed bids worth of EUR 1065 million, all of which were accepted by the MNB.

The MNB will hold other FX swap tenders on 29, 30, 31 December 2020 in order to provide the consistency of short-term rates with the level of short-term rates deemed optimal by the Monetary Council. The MNB will publish the call for tenders containing the parameters of the competitive EUR/HUF FX swap tender on 29 and 30 December 2020 at 8:00 am, in case of tender on 31 December 2020 at 11:00 am on the central bank's website and on the news agencies’ websites. Today’s tender is settled on 23 December 2020, other tenders are settled on 31 December 2020, the maturity day of all tenders is 7 January 2021.

In response to the swap market developments at the end of the quarter, the MNB will not hold a forint liquidity-providing swap tender until the end of December. The next forint liquidity swap tender will take place on 4 January 2021, with a value date of 6 January 2021.

Regarding the market characteristic of the end of the year the central bank's tender and auction schedule will be changed temporarily in the last two weeks of December as presented in the previous central bank announcement.