MNB to hold daily FX swap tenders providing EUR liquidity from Jul 15

MNB

The National Bank of Hungary (MNB) on Thursday said it will start holding FX swap tenders providing euro liquidity on a daily basis from July 15, according to a report by state news wire MTI.

The central bank held its first swap tender providing euro liquidity within a quarter on July 8.

MNB policymakers announced the within-quarter swaps - in addition to the central bank's end-of-quarter swaps - at their monthly policy meeting in June, with the aim of "ensuring that short-term rates in every sub-market, particularly in the swap market, and at all times develop consistently with the level of short-term rates deemed optimal".

MNB also said on Thursday that the maturities at the tenders will switch from overnight to tomnext. The central bank will hold both overnight and tomnext maturity swap tenders on Friday, July 15, but tomnext maturity swap tenders from Monday, July 18.

"Through an active market presence, the [MNB] will strengthen the efficiency of monetary transmission, thereby supporting the achievement and maintenance of price stability," the central bank said.

"The [MNB] continues to constantly monitor developments in financial market risks and stands ready to intervene in a decisive manner using every instrument in its monetary policy toolkit, if necessary, to achieve and maintain price stability," it added.

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