Danmarks Nationalbank

10/04/2021 | Press release | Distributed by Public on 10/04/2021 09:16

Foreign Exchange and Liquidity and Monthly Balance Sheet, September 2021

Foreign Exchange and Liquidity and Monthly Balance Sheet, September 2021

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases
Year 2021
Published 4 October 2021
‚ÄčIn September 2021, the foreign-exchange reserve increased by kr. 18.4 billion to kr. 501.7 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 23.5 billion, and the central government's net repayment of foreign debt for kr. 5.1 billion, cf. table 1.
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THE FOREIGN-EXCHANGE RESERVE

In September 2021, the foreign-exchange reserve increased by kr. 18.4 billion to kr. 501.7 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 23.5 billion, and the central government's net repayment of foreign debt for kr. 5.1 billion, cf. table 1.

For settlement in September, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 23.4 billion.

Danmarks Nationalbank's net foreign-exchange purchases and the change in the foreign-exchange reserve - table 1

Kr. billion September 2021 January 2021 - September 2021
Danmarks Nationalbank's interventions* to purchase foreign exchange, net 23.4 73.0
Other** 0.1 29.7
Danmarks Nationalbank's net foreign-exchange purchases 23.5 102.7
The central government's net foreign borrowing*** -5.1 -40.0
Change in the foreign-exchange reserve 18.4 62.7

Note: Details may not add because of rounding and previously published figure may have been revised. All transactions as per settlement date.

* Intervention takes place when Danmarks Nationalbank purchases and sells foreign exchange for Danish kroner in the foreign-exchange market in order to stabilise the exchange rate.

** Comprises e.g. interest accrued on the foreign-exchange reserve, the central government's net payments in foreign exchange, and changes in the banks' deposits in euro-denominated accounts at Danmarks Nationalbank.

*** Including net payments to the central government in foreign exchange as a result of currency swaps.

DEVELOPMENT IN LIQUIDITY

In September, the central government's net financing requirement amounted to kr. -17.5 billion. Since the turn of the year, the central government's net financing requirement has been kr. -60.6 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 18.1 billion in September, to an outstanding amount of kr. 167.3 billion. In September, Danmarks Nationalbank's net foreign-exchange purchases increased the net position by kr. 23.5 billion.

Impact of various factors on the net position of the banks and mortgage-credit institutes via-a-vis Danmarks Nationalbank - table 2

Kr. billion September 2021 January 2021 - September 2021
The central government's net financing -17.5 -60.6
Redemption on domestic central-government debt* 9.8 80.2
Net bond purchases by the government funds and own portfolio and financing of social housing 0.6 5.6
Other** -0.1 -0.5
The central government's gross domestic financing requirement -7.3 24.7
The central government's gross domestic borrowing*** -1.9 88.1
The central government's liquidity impact -5.4 -63.3
Danmarks Nationalbank's net foreign-exchange purchases 23.5 102.7
Danmarks Nationalbank's net bond purchases 0.0 -0.2
Other factors**** 0.0 -35.9
Change in net position 18.1 3.3

Note: Details may not add because of rounding and previously published figure may have been revised. All transactions as per settlement date.

* Including krone-denominated payments by the central government in currency swaps.

** Comprises foreign net financing requirement and changes in net collateral for the government's swap portfolio.

*** Gross long-term borrowing, net short-term borrowing and krone-denominated payments to the central government in currency swaps.

**** Comprises e.g. changes in banknotes and coins in circulation.

DANMARKS NATIONALBANK'S INTEREST RATES

Since 6 July 2012 the discount rate has been 0,00 pct. p.a., since 1 October 2021 the current-account interest rate has been -0,60 pct. p.a., since 1 October 2021 the lending rate has been -0,45 pct. p.a. and since 1 October 2021 the rate of interest on certificates of deposit has been -0,60 pct. p.a.

Enquiries can be directed to press advisor Teis Hald Jensen on tel. +45 3363 6066.

BALANCE SHEET OF DANMARKS NATIONALBANK 30 SEPTEMBER 2021

Assets 2021 2021
1000 kr. 30/09 31/08
Stock of gold 24,535,626 24,535,626
Foreign assets 427,692,508 409,169,420
Claims on the International Monetary Fund 51,715,754 51,715,754
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB 37,662 31,513
Monetary-policy lending - -
Other lending 1,931,928 1,823,729
- Banks'1) 1,931,928 1,823,729
- Miscellaneous loans - -
Domestic bonds 32,702,404 32,702,404
Financial fixed assets, etc. 131,056 131,056
Tangible and intangible fixed assets 702,819 705,680
Other assets 3,213,487 3,125,873
542,663,244 523,941,055

1) Other lending to banks include loans for cash deposits.

Liabilities 2021 2021
1000 kr. 30/09 31/08
Banknotes 71,457,631 71,837,719
Coins 6,242,850 6,265,486
Monetary-policy deposits 167,299,962 149,200,879
- Current accounts 166,949,962 148,850,879
- Certificates of deposit 350,000 350,000
Other deposits 10,601,813 10,041,925
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB 37,662 31,513
- Other deposits from banks' and mortgage credit institutes' 2,080,435 2,095,083
- Miscellaneous deposits 8,483,716 7,915,329
Central government 160,299,766 159,976,751
Foreign liabilities 2,212,525 2,070,528
Counterpart of Special Drawing Rights allocated by the IMF (SDR) 43,085,464 43,085,464
Other liabilities 61,312 60,382
Capital and reserves 81,401,921 81,401,921
542,663,244 523,941,055

Note: The monthly balance sheet is calculated at beginning of year values +/- accumulated transaction values. The monthly balance does not include value adjustments and accruals, as these are only calculated at year-end, cf. Danmarks Nationalbank's accounting principles.