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 short-term discount bills to the policy toolkit on a discretionary basis late in 2021. The MNB said the next FX swap tenders would take place on June 7, 14, 29, and 30.
Two discount bill auctions will be held: on June 7 and 21. The maturity date of the first swap, as well as both discount bills, will be July 1. The other FX swaps will mature on July 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 auctions.
"The purpose of the [MNB's] active market presence is to strengthen the effectiveness 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.
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