Danmarks Nationalbank

10/02/2019 | Press release | Distributed by Public on 10/02/2019 09:29

Foreign Exchange and Liquidity and Monthly Balance Sheet, September 2019

Foreign Exchange and Liquidity and Monthly Balance Sheet, September 2019

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases
Year 2019
Published 2 October 2019
​In September 2019, the foreign-exchange reserve decreased by kr. 1.6 billion to kr. 445.0 billion.
Page Content

THE FOREIGN-EXCHANGE RESERVE

In September 2019, the foreign-exchange reserve decreased by kr. 1.6 billion to kr. 445.0 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 1.5 billion, and the central government's net repayment of foreign debt for kr. 0.1 billion, cf. table 1.

In September, Danmarks Nationalbank has not intervened in the foreign exchange market.

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

Kr. billion September 2019 January 2019 - September 2019
Danmarks Nationalbank's interventions* to purchase foreign exchange, net 0.0 -1.9
Other** -1.5 -11.5
Danmarks Nationalbank's net foreign-exchange purchases -1.5 -13.4
The central government's net foreign borrowing*** -0.1 -0.7
Change in the foreign-exchange reserve -1.6 -14.0

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, EU-payments, 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. -21.8 billion. Since the turn of the year, the central government's net financing requirement has been kr. -6.2 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 3.4 billion in September, to an outstanding amount of kr. 218.9 billion. In September, the central government's liquidity impact increased the net position by kr. 4.9 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 2019 January 2019 - September 2019
The central government's net financing -21.8 -6.2
Redemption on domestic central-government debt* 10.2 52.5
Net bond purchases by the government funds and own portfolio and financing of social housing 0.5 46.1
Other** 0.1 1.1
The central government's gross domestic financing requirement -11.1 93.4
The central government's gross domestic borrowing*** -16.0 73.4
The central government's liquidity impact 4.9 20.1
Danmarks Nationalbank's net foreign-exchange purchases -1.5 -13.4
Danmarks Nationalbank's net bond purchases 0.0 0.6
Other factors**** 0.0 0.7
Change in net position 3.4 8.0

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, inter alia, net bond purchases by the government funds and 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 June 2012 the current-account interest rate has been 0,00 pct. p.a., since 20 January 2015 the lending rate has been 0,05 pct. p.a. and since 13 September 2019 the rate of interest on certificates of deposit has been -0,75 pct. p.a.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 30 SEPTEMBER 2019

Assets 2019 2019
1000 kr. 30/09 31/08
Stock of gold 17,840,840 17,840,840
Foreign assets 414,004,557 415,011,730
Claims on the International Monetary Fund 18,390,323 18,390,323
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB 28,581 32,643
Monetary-policy lending - -
Other lending 1,432,016 1,375,894
- Banks'1) 1,432,016 1,375,894
- Miscellaneous loans - -
Domestic bonds 33,200,245 33,200,245
Financial fixed assets, etc. 184,405 184,405
Tangible and intangible fixed assets 693,755 694,811
Other assets 694,699 732,029
486,469,421 487,462,920

1) Including loans financing decentralised banknote holdings.

Liabilities 2019 2019
1000 kr. 30/09 31/08
Banknotes 62,549,255 62,819,818
Coins 6,120,984 6,118,940
Monetary-policy deposits 218,872,360 215,467,282
- Current accounts 31,228,360 31,189,282
- Certificates of deposit 187,644,000 184,278,000
Other deposits 14,104,893 13,899,175
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB 28,581 32,643
- Other deposits from banks' and mortgage credit institutes' 2,682,486 2,452,565
- Miscellaneous deposits 11,393,826 11,413,967
Central government 91,579,314 96,483,526
Foreign liabilities 5,245,365 4,682,082
Counterpart of Special Drawing Rights allocated by the IMF (SDR) 13,880,049 13,880,049
Other liabilities 427,992 422,839
Capital and reserves 73,689,209 73,689,209
486,469,421 487,462,920

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.