Budapest, 29 March 2021. In today's FX swap tender providing euro liquidity, the Magyar Nemzeti Bank (MNB) accepted all bids in the amount of EUR 325 million (HUF 117.91 billion) with a maturity of 1 April 2021.
In accordance with the decision of the Monetary Council of 8 September 2020, the Magyar Nemzeti Bank held an FX swap tender providing euro liquidity. Two banks participated in the variable rate tender. Banks placed bids worth of EUR 325 million, all of which were accepted by the MNB.
The MNB closely monitors developments on the swap market focusing particularly on quarter-end periods. The MNB will hold another FX swap tenders on 30 and 31 March 2021 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. The MNB will publish the call for tender containing the parameters of the EUR/HUF FX swap tender on 30 March 2021 at 8:00 am and that of the 31 March tender at 11:00 am on the central bank's website and on the news agencies’ websites. The last two tenders’ starting value date will be 31 March, the maturity date of them will be Thursday, 1 April 2021.
The MNB modifies its one-week deposit instrument’s tender and maturity days connecting to FX swaps providing euro liquidity in order to support the liquidity management of these swaps. The maturity day of one-week deposit tender on 25 March 2021 will be 31 March 2021, therefore on the week starting with 29 March 2021 the one-week deposit tender will be held on Wednesday, 31 March 2021, with a maturity day on Thursday, 8 April.
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 March. The next forint liquidity swap tender will take place on 6 April 2021, with a value date of 7 April 2021.