Foreign Exchange and Liquidity and Monthly Balance Sheet, April 2021

Page Content

THE FOREIGN-EXCHANGE RESERVE

In April 2021, the foreign-exchange reserve decreased by kr. 7.9 billion to kr. 438.7 billion. The decrease reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 2.1 billion, and the central government's net repayment of foreign debt for kr. 10.0 billion, cf. table 1.

In April, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 2.2 billion.

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

Kr. billion	April 2021	January 2021 - April 2021
Danmarks Nationalbank's interventions* to purchase foreign exchange, net	2.2	19.6
Other**	-0.1	0.0
Danmarks Nationalbank's net foreign-exchange purchases	2.1	19.7
The central government's net foreign borrowing***	-10.0	-20.0
Change in the foreign-exchange reserve	-7.9	-0.3

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 April, the central government's net financing requirement amounted to kr. 28.8 billion. Since the turn of the year, the central government's net financing requirement has been kr. -67.5 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 22.5 billion in April, to an outstanding amount of kr. 134.3 billion. In April, the central government's liquidity impact increased the net position by kr. 21.1 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	April 2021	January 2021 - April 2021
The central government's net financing	28.8	-67.5
Redemption on domestic central-government debt*	7.9	42.8
Net bond purchases by the government funds and own portfolio and financing of social housing	-0.8	5.2
Other**	0.3	0.0
The central government's gross domestic financing requirement	36.3	-19.5
The central government's gross domestic borrowing***	15.2	26.5
The central government's liquidity impact	21.1	-46.0
Danmarks Nationalbank's net foreign-exchange purchases	2.1	19.7
Danmarks Nationalbank's net bond purchases	0.0	0.1
Other factors****	-0.7	-3.5
Change in net position	22.5	-29.7

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 19 March 2021 the current-account interest rate has been -0,50 pct. p.a., since 19 March 2021 the lending rate has been -0,35 pct. p.a. and since 19 March 2021 the rate of interest on certificates of deposit has been -0,50 pct. p.a.

Enquiries can be directed to press advisor Ole Mikkelsen on tel. +45 3363 6027.

BALANCE SHEET OF DANMARKS NATIONALBANK 30 APRIL 2021

Assets	2021	2021
1000 kr.	30/04	31/03
Stock of gold	24,535,626	24,535,626
Foreign assets	394,665,902	402,096,074
Claims on the International Monetary Fund	22,025,035	22,025,035
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB	34,522	28,211
Monetary-policy lending	2,040,000	16,000,000
Other lending	1,721,508	1,919,560
- Banks'1)	1,721,508	1,919,560
- Miscellaneous loans	-	-
Domestic bonds	33,028,041	32,984,204
Financial fixed assets, etc.	131,056	130,748
Tangible and intangible fixed assets	714,316	713,091
Other assets	3,448,585	2,990,348
482,344,591	503,422,897

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

Liabilities	2021	2021
1000 kr.	30/04	31/03
Banknotes	71,017,142	70,541,053
Coins	6,233,938	6,185,194
Monetary-policy deposits	136,315,519	127,771,015
- Current accounts	135,965,519	125,435,015
- Certificates of deposit	350,000	2,336,000
Other deposits	8,373,312	7,867,989
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB	34,522	28,211
- Other deposits from banks' and mortgage credit institutes'	1,683,835	2,034,484
- Miscellaneous deposits	6,654,955	5,805,294
Central government	162,942,415	194,002,692
Foreign liabilities	2,555,385	2,128,804
Counterpart of Special Drawing Rights allocated by the IMF (SDR)	13,415,554	13,415,554
Other liabilities	89,405	108,675
Capital and reserves	81,401,921	81,401,921
482,344,591	503,422,897

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.