17 June 2022
The Magyar Nemzeti Bank holds FX swap tenders providing euro liquidity and short-term discount bill auctions in June 2022. In order to ensure that the FX swap market yields remain in line with the interest rate of the one-week deposit facility, the Bank will hold a two-week foreign exchange swap tender with a maturity of 7 July 2022. Thus, it will allow the banking system to adjust to the end of the quarter through a total of five FX swap tenders, which are announced without a quantitative limit.
In order to ensure the effectiveness of monetary transmission, it is necessary that the FX swap market yields follow the interest rate of the one-week deposit facility as rapidly as possible. Hence, supplementing the already announced quarter-end euro swap tenders, the MNB will hold a two-week foreign exchange swap tender providing euro liquidity on 21 June 2022, with a starting value date on 23 June and maturity date on 7 July. The detailed parameters of the tender will be published by the MNB in the tender announcement of 21 June 2022 at 9 am.
In addition to the foreign exchange swap tender of 21 June 2022, the central bank will hold a discount bill tender on the same day and two other foreign exchange swap tenders providing euro liquidity at the end of June, in accordance with its announcement of 27 May 2022.
With its decision today, the Bank will allow the accommodation of the banking system at the end of the quarter in a total of five euroswap tenders. The Bank provides through the tenders the necessary amount of euro liquidity to the banking system. The Bank announces the tenders without a quantitative limit and may also use its international master repurchase agreements providing euro liquidity to finance the swap instrument.