The MNB will organize currency exchange tenders providing liquidity in euros and an auction of discount vouchers in December to enhance the efficiency of monetary transmission
December 3, 2021
The Magyar Nemzeti Bank will organize currency swap tenders providing liquidity in euros and an auction of short-term discount coupons in December 2021. The objective of the active presence of the MNB in ââthe market is manage the effects of end-of-quarter tensions on the swap markets, and thus strengthen the efficiency of monetary transmission and maintain price stability. Currency exchange offers will be announced without any quantitative limit. The Bank may use its international framework repurchase agreements to finance calls for tenders. The first currency exchange offer will take place on December 7, 2021.
In accordance with the Bank’s decision taken earlier and in order to manage the effects of end-of-quarter tensions on the swap markets, Magyar Nemzeti Bank will proceed in December 2021 to bids for foreign exchange swaps providing liquidity in euros and an auction of short-term bonds to enhance the efficiency of monetary transmission and maintain price stability.
Currency exchange offers will be announced without any quantitative limit. The Bank may use its international repurchase agreements providing liquidity in euros to finance the swap instrument. The notice on the swap facility ensuring liquidity in euros is available at the following link: Information leaflet.
Following the decision of the Monetary Council of November 16, 2021, the MNB’s monetary policy toolbox was supplemented by a discount bill with a maturity of up to one month, announced on a discretionary basis. The MNB will give banks access to the discount invoice with a quantitative limit. The instrument aims to reduce the tensions in the swap market that accumulate at the end of each quarter and to strengthen the efficiency of monetary transmission by providing targeted support to the banking system to deleverage. The central bank discount note information sheet is available at the following link: Short-term discount invoice.
The currency swap tenders will take place on December 7, 21, 30 and 31, 2021 and the discount voucher auction will take place on December 20. The starting value date of the first currency exchange offer with a one-month expiry will be December 9. The starting value date of the central bank discount voucher and the second currency swap offer with a two-week maturity will be December 23, and that of the last two currency swap offers will be December 31. . The due date for all currency exchange transactions and the discount invoice will be January 6, 2022.
The announcement containing the parameters of the EUR / HUF FX swap offers of December 7, 2021 will be published on the websites of the Bank and the news agencies at 8:00 a.m. and that of the offers of December 21, 30 and 31, 2021 at 9:00 a.m. to strain it. The central bank’s discount note public offering will be released on December 15, and the tender will be released on December 17.
Central bank currency swap and discount coupon tender dates between December 7 and December 31, 2021
Central Bank of Hungary published this content on 03 December 2021 and is solely responsible for the information it contains. Distributed by Public, unedited and unmodified, on 03 December 2021 12:01:00 PM UTC.