Budapest, March 10, 2023 In March 2023, the Magyar Nemzeti Bank (MNB) will hold its usual end-of-quarter foreign exchange swap tender providing euro-liquidity, as well as a discount bill auction, in addition to the regularly used instruments. The aim of the MNB's active market presence is to strengthen the effectiveness of monetary transmission, and to maintain market stability in the foreign exchange swap market through the support of bank balance sheet adjustment.
In March 2023, in addition to maintaining the daily T/N foreign exchange swap tenders and weekly one-week discount bill auctions announced on Wednesdays, the MNB will hold an end-of-quarter foreign exchange swap tender providing euro liquidity and a discount bill auction, both with two-week maturity. The purpose of the transactions is to strengthen the efficiency of monetary transmission, thereby supporting the achievement of price stability, and managing possible tensions in the foreign exchange swap market.
The end-of-quarter, two-week foreign exchange swap tender date is March 21, 2023, the value date of the tender is March 23. The auction of the end-of-quarter, two-week discount bill will also take place on March 21, with T+2 settlement day the value date of the auction is also March 23. Both the two-week foreign exchange swap deal and the discount bill expire on April 6, 2023. The MNB publishes the call for bids containing the parameters of the euro/forint foreign exchange swap tender on the tender day at 9:00 a.m. on the central bank's website and on news agency websites. The public offering of the central bank discount bill will also be published at 9:00 a.m. on the day of the auction. The MNB can use its international repo agreements that provide euro liquidity to finance its foreign exchange swap tenders that extend through the end of the quarter.
The Notice for Terms and Conditions of the FX swap providing euro liquidity is available at the following link: Notice. The Information sheet of the central bank discount bill is available at the following link: Information sheet.
Important dates of central bank tenders and auctions at the end of the first quarter of 2023*
*The regular daily T/N FX swap tenders providing euro liquidity and the weekly discount bill auctions will be kept unchanged according to the usual time schedule.