Budapest, June 13, 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 June 2023, 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 maintain stability in the FX swaps market by supporting banks' balance sheet adjustment.
In June 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 one-week maturity. Among the instruments regularly announced, the discount bond auction on June 28 and the T/N FX swap tender on June 29 also support the end-of-quarter adjustment.
The end-of-quarter, one-week foreign exchange swap tender date is June 22, the auction of the end-of-quarter, one-week discount bill will also take place on June 22, for both instruments with T+2 settlement day the value date is June 26. Both the one-week foreign exchange swap deal and the discount bill expire on July 3, 2023. The MNB publishes the call for bids containing the parameters of the euro/forint foreign exchange swap tender on 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 second 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.