14 February 2022 The Magyar Nemzeti Bank will hold FX swap tenders providing euro liquidity and a short-term discount bill auction in March 2022. The purpose of the MNB’s active market presence is to strengthen the efficiency of monetary transmission by addressing potential swap market tensions at the end of the quarter, thereby supporting the achievement and maintenance of price stability. The FX swap tenders will be announced without a quantitative limit. The Bank may use its international master repurchase agreements to finance the tenders. The first FX swap tender will take place on 1 March 2022.
In order to strengthen the efficiency of monetary transmission and thereby support the achievement and maintenance of price stability, the MNB will hold foreign exchange swap tenders and short-term discount bill auction again in March, in line with its previous decisions. As in previous quarters this allows the central bank to successfully manage possible end-of-quarter foreign exchange swap market tensions in the most important market segments in terms of monetary transmission. The FX swap tenders will be announced with no quantitative limit. The Bank may use its international master repurchase agreements providing euro liquidity to finance the swap instrument. The notice on the swap facility providing euro liquidity is available at the following link: Information notice.
Following the Monetary Council’s decision on 16 November 2021, the MNB’s monetary policy toolkit has been complemented by a discount bill with a maturity of up to one month, announced on a discretionary basis. The MNB will grant access to banks to the discount bill with a quantitative limit. The instrument aims to reduce potential tensions in the swap market building up at the end of each quarter and thereby strengthen the efficiency of monetary transmission by providing targeted support to the banking system to deleverage. The Information Sheet of the central bank discount bill is available at the following link: Short-term discount bill.
The FX swap tenders will take place on 1, 23, 30 and 31 March 2022 and the discount bill auction will be held on 11 March. The starting value date of the first FX swap tender with a maturity of one month will be 3 March. The starting value date of the central bank discount bill will be 17 March. The starting value date of the second FX swap tender with a maturity of two weeks will be 25 March and that of the last two FX swap tenders will be 31 March. The maturity date of the first FX swap transaction will be 1 April, that of the last three FX swap tenders and the discount bill will be 7 April 2022.
The announcement containing the parameters of EUR/HUF FX swap tenders of 1, 23, 30, 31 March 2021 will be published on the Bank’s and news agencies’ websites at 9 am on the day of the tender. The public offer of the central bank discount bill will be published on 8 March and call for bids will be published on 10 March.
Dates of central bank FX swap and discount bill tenders between 1 and 31 March 2022