March dates announced for FX swap tenders
The National Bank of Hungary (MNB) yesterday announced dates for FX swap tenders providing euro liquidity and a discount bill auction in March to reduce end-of-quarter swap market tensions in a release on its website.
The central bank started holding the end-of-quarter FX swap tenders in September 2020 to improve the effectiveness of monetary policy transmission.
MNB policymakers decided to add the discount bill, with a maturity of up to one month, to the policy toolkit on a discretionary basis at a monthly policy meeting in November 2021.
The MNB said the next FX swap tenders would take place on March 1, 23, 30, and 31. The discount bill auction will be held on March 11. The maturity date of the first swap will be April 1.
The other FX swaps, as well as the discount bill, will mature on April 7. There will be no quantitative limit at the FX swap tenders, the MNB said, adding that it may use its international master repurchase agreements to finance the swap instrument. There will be a quantitative limit for the discount bill.
"The purpose of the [MNB]'s active market presence is to strengthen the efficiency of monetary transmission by addressing potential swap market tensions at the end of the quarter, thereby supporting the achievement and maintenance of price stability," the central bank said.
MOL Shareholders Approve Dividend of Around HUF 250/Share
Chinese President to Visit Budapest in May
LOT Seoul Flight Lands in Kazakhstan Due to Drunken Passenge...
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
