The payment date for the three-month swaps is January 7, when the swaps allocated in the extra tender expire. The swaps allotted at Monday’s regular three-month tender will expire on April 8. Demand for the year-end liquidity support at the December 22 tender was limited compared to the €600 mln offer, indicating little tension on the swap market.
With the €20 mln two-week swaps rolled over and €150m expiring, the outstanding stock of swaps will drop by €130 mln to €240 mln on January 7. Demand for the MNB’s EUR/HUF swaps has been nil since March 2012, with the exception of extra year-end offers and some tenders in the middle of last September.
The MNB has held extraordinary short-term FX swap tenders late in December to ease any possible year-end foreign exchange liquidity squeeze and to keep rates in all market segments close to the central bank key rate. There were no bids at the extra tender at the end of 2013 while demand reached €400 mln at the end of 2012 and €290 mln at the end of 2011.
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