Danmarks Nationalbank

04/03/2024 | Press release | Distributed by Public on 04/03/2024 09:06

Foreign Exchange and Liquidity and Monthly Balance Sheet, March 2024

THE FOREIGN-EXCHANGE RESERVE

In March 2024, the foreign-exchange reserve increased by kr. 0.1 billion to kr. 636.8 billion. The increase reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 0.3 billion, and the central government's net borrowing of foreign debt for kr. 0.4 billion, cf. table 1.

For settlement in March, 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 March 2024 January 2024 - March 2024
Danmarks Nationalbank's interventions* to purchase foreign exchange, net 0.0 0.0
Other** -0.3 8.7
Danmarks Nationalbank's net foreign-exchange purchases -0.3 8.7
The central government's net foreign borrowing*** 0.4 2.2
Change in the foreign-exchange reserve 0.1 10.9

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 March, the central government's net financing requirement amounted to kr. -64.0 billion. Since the turn of the year, the central government's net financing requirement has been kr. -68.1 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 57.6 billion in March, to an outstanding amount of kr. 231.2 billion. In March, the central government's liquidity impact decreased the net position by kr. 58.6 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 March 2024 January 2024 - March 2024
The central government's net financing -64.0 -68.1
Redemption on domestic central-government debt* 5.4 13.2
Net bond purchases by the government funds and own portfolio and financing of social housing 0.8 -0.3
Other** -0.1 0.2
The central government's gross domestic financing requirement -57.8 -55.0
The central government's gross domestic borrowing*** 0.7 18.2
The central government's liquidity impact -58.6 -73.2
Danmarks Nationalbank's net foreign-exchange purchases -0.3 8.7
Danmarks Nationalbank's net bond purchases 0.5 1.0
Other factors**** 0.7 4.2
Change in net position -57.6 -59.3

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 15 September 2023 the discount rate has been 3.60 pct. p.a., since 15 September 2023 the current-account interest rate has been 3.60 pct. p.a., since 15 September 2023 the lending rate has been 3.75 pct. p.a. and since 15 September 2023 the rate of interest on certificates of deposit has been 3.60 pct. p.a.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 31 MARCH 2024

Assets 2024 2024
1000 kr. 31/03 29/02
Stock of gold 29,762,724 29,762,724
Foreign assets 552,345,411 551,961,094
Claims on the International Monetary Fund 56,603,697 56,634,856
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB 15,840 21,744
Monetary-policy lending - -
Other lending 1,188,865 1,261,544
- Banks'1) 1,188,865 1,261,544
- Miscellaneous loans - -
Domestic bonds 34,090,781 33,557,704
Financial fixed assets, etc. 131,679 131,679
Tangible and intangible fixed assets 628,508 632,516
Other assets 2,596,907 2,596,945
677,364,412 676,560,806

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

Liabilities 2024 2024
1000 kr. 31/03 29/02
Banknotes 57,330,805 57,938,359
Coins 6,133,602 6,136,429
Monetary-policy deposits 231,206,717 288,854,679
- Current accounts 231,206,717 288,854,679
- Certificates of deposit - -
Other deposits 14,113,370 14,613,116
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB 15,840 21,744
- Other deposits from banks' and mortgage credit institutes' 1,688,583 2,103,252
- Miscellaneous deposits 12,408,947 12,488,120
Central government 235,843,268 176,909,664
Foreign liabilities 1,949,218 1,651,126
Counterpart of Special Drawing Rights allocated by the IMF (SDR) 43,743,945 43,743,945
Other liabilities 3,336,507 13,581,505
Capital and reserves 83,706,980 73,131,983
677,364,412 676,560,806

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.