Central Bank of Hungary

06/30/2021 | News release | Distributed by Public on 06/30/2021 06:20

The MNB held an FX swap tender providing euro liquidity

Budapest, 30 June 2021. In today's FX swap tender providing euro liquidity, the Magyar Nemzeti Bank (MNB) accepted all bids in the amount of EUR 292 million (HUF 103 billion) with a maturity of 1 July 2021. In its four tenders providing euro liquidity at the end of the first quarter of 2021, the central bank provided a total of EUR 4520 million to the domestic banking system against forint liquidity.

In accordance with the decision of the Monetary Council of 8 September 2020, the Magyar Nemzeti Bank held an FX swap tender providing euro liquidity. Five banks participated in the variable rate tender. Banks placed bids worth of EUR 292 million, all of which were accepted by the MNB. Thus, in its four tenders providing euro liquidity at the end of the second quarter of 2021, the central bank provided a total of EUR 4520 million to the domestic banking system against forint liquidity.

In response to the swap market developments at the end of the quarter, the MNB has not held forint liquidity-providing swap tenders until the end of June. The next forint liquidity swap tender takes place on 12 July 2021 in line with the maturity structure of the facility. The value date of the tender will be 14 July 2021.