MNB Offers Banks More Euros

The National Bank of Hungary (MNB) will increase the amount of euro liquidity offered on swap tenders, the central bank said on Wednesday. The tenders will be announced with a total amount of EUR six billion, instead of EUR five billion.

As the financial website portfolio.hu notes, MNB is committed to achieving the inflation target in a sustainable manner. Looking ahead, financial market stability is key to achieving price stability. MNB will pay particular attention to maintaining the stability of the swap market and will continue to strengthen the efficiency of monetary transmission through an active market presence, the central bank said in a statement.

To this end, MNB will increase the volume of euro liquidity provided through foreign exchange swaps from EUR 5 billion to EUR 6 billion from September 1, to be made available to banks in the framework of regular daily overnight swaps.

In addition, the central bank will continue to strengthen the efficiency of monetary transmission through regular discount bond auctions, in order to ensure that the interest rate conditions set by the Monetary Council are reflected in a broad range of financial markets.