Foreign Exchange and Liquidity and Monthly Balance Sheet, May 2023

THE FOREIGN-EXCHANGE RESERVE

In May 2023, the foreign-exchange reserve increased by kr. 0.4 billion to kr. 603.3 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 1.2 billion, and the central government's net repayment of foreign debt for kr. 0.8 billion, cf. table 1.

For settlement in May, 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

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 May, the central government's net financing requirement amounted to kr. 4.2 billion. Since the turn of the year, the central government's net financing requirement has been kr. -19.3 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 0.5 billion in May, to an outstanding amount of kr. 236.9 billion.

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

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 8 May 2023 the discount rate has been 2,85 pct. p.a., since 8 May 2023 the current-account interest rate has been 2,85 pct. p.a., since 8 May 2023 the lending rate has been 3,00 pct. p.a. and since 8 May 2023 the rate of interest on certificates of deposit has been 2,85 pct. p.a.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 31 MAY 2023

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

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.