27 May 2022 The Magyar Nemzeti Bank will hold four FX swap tenders providing euro liquidity and two short-term discount bill auctions in June 2022. The purpose of the MNB’s active market presence is to strengthen the effectiveness 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 and discount bill auction at the end of the second quarter will both take place on 7 June 2022.
In order to strengthen the effectiveness of monetary transmission and thereby support the achievement and maintenance of price stability, the MNB will again hold foreign exchange swap tenders and short-term discount bill auctions in June, 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 set of monetary policy instruments has been complemented by a discount bill with a maturity of up to one month, announced on a discretionary basis. The instrument aims to reduce potential tensions in the swap market building up at the end of each quarter and thereby strengthen the effectiveness of monetary transmission by providing targeted support to the banking system to deleverage. The MNB will grant access to banks to the discount bill with a quantitative limit. 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 7, 14, 29 and 30 June 2022 and the discount bill auctions will be held on 7 and 21 June. The starting value date of the first FX swap tender and the first central bank discount bill auction at the end of the second quarter will be 9 June. The starting value date of the second FX swap tender with a maturity of two weeks will be 16 June. The starting value date of the second central bank discount bill will be 23 June, and that of the last two FX swap tenders will be 30 June. The maturity date of the first FX swap and the first and second discount bill transactions will be 1 July, and the maturity date of the last three FX swap tenders will be 7 July 2022.
The announcement containing the parameters of EUR/HUF FX swap tenders of 7, 14, 29, 30 June 2022 will be published on the Bank’s and news agencies’ websites at 09:00 CEST on the day of the tender. The public offers of the central bank discount bills will be published on 1 and 16 June and the calls for bids will be published on 3 and 20 June.
Dates of central bank FX swap tenders and discount bill auctions between 1 and 30 June 2022