Appendix

Press Releases

Interest-rate changes

May 5, 1998 on interest rate increase
With effect from 6 May 1998 the discount rate will be raised by ½ per cent to 4 per cent. The rate of interest on the banks' current accounts with the Nationalbank is also raised by ½ per cent to 4 per cent. On 6 May the rate of interest on the Nationalbank's certificates of deposit and the repo rate will be 4.25 per cent, an increase of 0.50 per cent.

During recent months the Danish krone has tended to weaken. Since February the Nationalbank has sold foreign exchange to support the krone. Since the beginning of April the tendency has been more pronounced and the sale amounted to DKK 16 billion in April. The sale of foreign exchange has continued in May. The foreign-exchange reserve is, however, still substantial, more than DKK 100 billion.

The objective of the foreign-exchange-rate policy is to maintain a stable krone rate against the D-mark and the other core currencies. This is achieved through the use of the short-term interest rates and interventions in the foreign exchange market.

The continuing and increasing requirement to support the krone through sale of foreign exchange during recent months has made it necessary to increase the Nationalbank's interest rates.

For further information please contact Ms Kirsten Mordhorst on telephone +45 33 63 60 21.

May 29, 1998 on interest rate decrease
Effective from today the Nationalbank's discount rate is lowered by ¼ per cent to 3¾ per cent. Likewise, the rate of interest on the banks' current accounts with the Nationalbank is lowered by ¼ per cent to 3¾ per cent. The rate of interest on certificates of deposit and repurchase agreements is also lowered by 0.25 per cent to 4.00 per cent.

In April and the beginning of May the foreign-exchange market was affected by uncertainty prior to the referendum on the Amsterdam Treaty. The Nationalbank's interest rate increase on 5 May stabilized the market and in May the Nationalbank's purchases and sales of foreign exchange have virtually balanced.

The clarification of the situation after the referendum provides the basis for lowering the Nationalbank's interest rates.

For further information please contact Ms Kirsten Mordhorst on telephone +45 33 63 60 21.

September 18, 1998 on interest rate increase
The discount rate will be increased by ½ per cent to 4¼ per cent and likewise the rate of interest on the banks' current accounts with the Nationalbank is increased by ½ per cent to 4¼ per cent. The rate of interest on the Nationalbank's certificates of deposit and the repo rate will be increased by 1.00 per cent to 5.00 per cent. The interest rate increases will be effective from Monday 21 September 1998.

The background for the interest rate increase is that during the recent turbulence on international markets the Nationalbank has undertaken significant sales of foreign exchange to stabilize the exchange rate of the krone.

For further information please contact Ms Kirsten Mordhorst on telephone + 45 33 63 60 21.

November 5, 1998 on interest rate decrease
Effective from today the Nationalbank's discount rate is lowered by ¼ per cent to 4 per cent. Likewise, the rate of interest on the banks' current accounts with the Nationalbank is lowered by 1/4 per cent to 4 per cent. The rate of interest on repurchase agreements and certificates of deposit is also lowered by 0.25 per cent to 4.40 per cent.

The background to the lowering of the interest rates is the development on the foreign-exchange market, where the Nationalbank has purchased foreign exchange in the recent period.

For further information please contact Ms Kirsten Mordhorst on telephone +45 33 63 60 21.

December 3, 1998 on interest rate decrease
With effect from 4 December 1998 the Nationalbank's discount rate will be lowered by ½ per cent to 3½ per cent. Likewise, the rate of interest on the banks' current accounts with the Nationalbank is lowered by ½ per cent to 3½ per cent. The rate of interest on repurchase agreements and certificates of deposit is lowered by 0.30 per cent to 3.95 per cent.

The lowering of the interest rates should be viewed against the background of the reduction of interest rates by the central banks of the future euro-area countries.

For further information please contact Ms Kirsten Mordhorst on telephone +45 33 63 60 21.

Foreign-exchange rates

March 16, 1998 on realignment of exchange rates within the EMS
As a consequence of the realignment of exchange rates within the European Monetary System (EMS) the central rate of the Irish pound has been revalued by 3 per cent.

The Greek drachma has joined the Exchange-Rate Mechanism of the EMS with a fluctuation band of +/-15 per cent.

As from Monday, March 16, 1998 the following intervention rates between Danmarks Nationalbank and foreign-exchange dealers apply to the Irish pound and the Greek drachma.

The intervention rates between the other ERM currencies will remain unchanged.

This implies adjustment of the central rates of all ERM currencies vis-à-vis the ECU. The new central rates are as follows:

The theoretical central rate for the pound sterling, which does not participate in the Exchange-Rate Mechanism, is as follows:

September 8, 1998 on Danmarks Nationalbank's exchange rates after January 1, 1999
With effect from January 1, 1999 11 EU member states will introduce the single currency, the euro. As from January 4, 1999 Danmarks Nationalbank will therefore adjust the daily list of exchange rates, and publish a rate for Danish kroner per 100 euro. The exchange rate for the European currency unit, the ECU, will lapse simultaneously.

The Nationalbank's exchange rates are published at approximately 12.00 noon and are based on market conditions at 11.30 a.m. As from January 4, 1999 the exchange-rate list will include the following currencies:

Since the present notes and coins will circulate in the euro area until 2002 during this period the Nationalbank will calculate and publish exchange rates for the previous national currencies. The conversion rates between these currencies and the euro will be irrevocably fixed on January 1, 1999, and the exchange rates for the national currency units in the euro countries will be calculated by the Nationalbank on the basis of the euro rate and the official conversion rates.

These calculated exchange rates will comprise:

Further information can be obtained from Frank Nielsen on telephone (+45) 33 63 67 30.

December 31, 1998 on the krone's central rate and fluctuation band in ERM II
As from 1 January 1999 the krone will participate in ERM II, the new EU exchange-rate mechanism. Following the adoption of the fixed conversion rates between the euro and the national currencies of the countries introducing the euro as from 1 January 1999, Denmark, Greece, the euro countries and the European Central Bank, ECB, today fixed the central rates of the krone and the drachma against the euro. The calculation of the krone's central rate against the euro in ERM II is based on its previous central rate against the D-mark in the exchange-rate mechanism of the EMS, namely 381.443 DKK per 100 DEM and the conversion rate between D-mark and euro:

Central rate 746.038 DKK per 100 EUR

The fluctuation band of the krone has been fixed at +/-2.25 per cent and the intervention rates are as follows:

Selling rate 762.824 DKK per 100 EUR
Buying rate 729.252 DKK per 100 EUR

The fixed conversion rates between the national currencies of the euro countries and the euro are stated on page 2.

Information on the ERM II is available at Danmarks Nationalbank's website, the section entitled "About us", at the address:
www.nationalbanken.dk.

For further information, please contact Bjarne Skafte on telephone +45 33 63 60 22.

Conversion rates
The irrevocably locked conversion rates between the euro and the currencies of the member states introducing the euro are as follows:

Turnover in the foreign-exchange market

September 29, 1998
In April and June 1998 Danmarks Nationalbank, in cooperation with the 16 largest Danish banks, carried out a survey of the Danish foreign-exchange market and of the market for financial derivatives. The turnover in these markets was investigated in April and statistics for the outstanding amounts related to financial derivatives were compiled at the end of June.

The Nationalbank's survey is part of a major international survey conducted every three years. The number of participating countries has been increased considerably from 26 in 1995 to 40 in the present survey. The surveys in the various countries are coordinated by the Bank for International Settlements, BIS, in Basle.

Today most of the participating central banks publish the key figures for the part of the survey which concerns the turnover in the foreign-exchange market and the markets for financial derivatives. The statistics for the outstanding amounts related to financial derivatives will be published as soon as they are available.

In the following the Nationalbank provides an overview of the Danish turnover statistics. Once all Danish data has been processed - probably in October or November - the Nationalbank will issue a detailed statement.

Information on the results of the market surveys in other countries will in many cases be available on the home pages of the respective central banks. These home pages will be listed by BIS at:

www.bis.org/publ/r_fx98.htm.

During October 1998 BIS will issue a statement on the size of the global foreign-exchange market. It is not possible to calculate the size of the global market by simple addition of the national data, since this would entail considerable duplicate counting of transactions between banks participating in the survey in their individual countries. During the spring of 1999 BIS will issue a publication with a detailed overview of the data for all countries.

Turnover in the Danish market
To facilitate comparison with other countries' statistics trading is compiled in USD. The compilation is made on a net basis, i.e. adjustment is made for duplicate reporting of transactions between two Danish banks which both participate in the survey. Transactions between various branches of a bank are included to the extent that they took place on market terms.

Table 1 NET TURNOVER IN THE FOREIGN-EXCHANGE MARKET BY TRANSACTION TYPE

USD billion	April 1998	April 1995	April 1992	April 1989	April 1998	April 1995	April 1992	April 1989
	Total				Per banking day
Spot transactions	120	151	199	121	6.3	8.9	10.5	6.4
Forward transactions	21	26	38	25	1.1	1.5	2.0	1.3
Fx swaps	378	342	273	105	19.9	20.1	14.4	5.5
Currency swaps	2	14	na	na	0.1	0.9	na	na
Options	12	7	22	3	0.7	0.4	1.2	0.2
Foreign-exchange trading, total	533	540	532	254	28.1	31.8	28.1	13.4
Note:Na: Data not available.

The Nationalbank estimates that the participating banks cover approximately 95 per cent of the total Danish trading volume.

In April 1998 trading by Danish participants in the foreign-exchange market totalled USD 28.1 billion per banking day. This is slightly less than in 1995, but on a par with the statistics for 1992 and considerably above the 1989 figures. The data for 1989 and 1992 is not fully comparable with the more recent compilations.

The distribution of foreign-exchange turnover per banking day by transaction type shows a relatively pronounced shift whereby spot and forward trading has declined while swap trading has been almost unchanged. The background to these changes is probably the greater stability of the krone vis-à-vis the leading European currencies. For most European currencies this has reduced the need for foreign-exchange transactions to hedge the exchange-rate risk. For example, spot and forward transactions in DEM have decreased relatively strongly, whereas trading in the currencies still subject to exchange-rate fluctuation, primarily USD, has risen. The extensive trading in swaps reflects the high international investment activity, since swap transactions are widely used to hedge the exchange-rate risk on such investments.

Table 2 NET TURNOVER IN INTEREST-RATE DERIVATIVES

USD billion	April 1998	April 1995	April 1998	April 1995
	Total		Per Banking day
FRAs	64	37	3.4	2.2
Interest-rate swaps	13	4	0.7	0.2
Interest-rate options (OTC)	2	4	0.1	0.2
Interest-rate derivatives trading, total	79	45	4.2	2.6

Trading in interest-rate derivatives amounted to USD 4.2 billion per banking day, which is a strong increase on 1995. The volume of interest-rate derivative trading was not compiled in the 1989 and 1992 surveys.

For further information please contact Helge Fosgaard on telephone (+45) 33 63 67 39.

New 1,000-krone note

June 15, 1998
On September 18, 1998 the Nationalbank will issue a new 1,000-krone note.

For the first time on a Danish banknote the face of the note features a double portrait. It shows the painters Anna and Michael Ancher. They are both well-known for their paintings which in particular depict everyday life at Skagen (the Skaw). The double portrait is inspired by two pictures painted by P. S. Krøyer in 1884. These paintings are displayed at Skagens Museum.

The battle scene on the reverse of the 1,000-krone note is inspired by a relief from a stone monument in Bislev Church near Nibe.

The principal colour of the new note is red. With dimensions of 165 x 72 mm it is 1 cm longer than the 500-krone note. All notes in the new series are of the same height.

The 1,000-krone note is the third note in the new series. The remaining two notes, the 50- and 100-krone notes, are expected to be issued in 1999.

The new note series is being issued because new developments in graphic technology have made it necessary to improve the special features to protect the notes against counterfeiting.

The faces of all the banknotes in the new series show portraits of Danish women and men who have made a contribution to art or science. The motifs on the reverse are inspired by stone reliefs in Danish churches.

The 1,000-krone note will be presented at a press conference at Danmarks Nationalbank shortly before it is issued. A folder describing the security features of the note will be distributed to all households. The folder will also be available at banks. Information will furthermore be presented via TV and the Internet.

The old 1,000-krone notes will remain legal tender but will be withdrawn as they are returned to the Nationalbank. There are 19 million 1,000-krone notes in circulation.

For further information please contact Ms Kirsten Mordhorst on telephone +45 33 63 60 21.

Danmarks Nationalbank on the Internet

May 25, 1998
Danmarks Nationalbank has launched its homepage on the Internet. The address is:

www.nationalbanken.dk

The website presents an overview of the functions of Danmarks Nationalbank and provides access to the bank's press releases, publications, statisticaldata,etc.Thewebsitethusimprovestheaccesstoinformationon theNationalbank'stasksandpoliciesandonDanishbanknotesandcoins.

The material is presented so as to meet the general public's need for information of a general nature and furthermore to provide the more detailed information required by professional users. Most of the website is available in an English version. The key areas are described below:

Welcome
Practical information and links to other websites.

About us
ThetasksoftheNationalbankanditsspecialpositionasDenmark'scentral bank are described. The management of the Nationalbank is presented and an outline is given of its internal organization. The history of the bank is related to economic-policy events during the last 200-300 years. The Nationalbank´s building is also described, including photographs.

Press releases
The website includes the most recent press releases from the Nationalbank as well as some of the speeches made by the Governors. The aim is for material to be available on the Internet as soon as possible after it is published.

Publications
The Nationalbank's publications are presented as full-text versions.

Statistics
This section presents financial statistics and statistical information on external payments.

Markets
This section presents the information which the Nationalbank makes available on a day-to-day basis concerning e.g. exchange rates and interest rates.

Notes and coins
The Nationalbank is currently issuing new banknotes. This section presents the new note series. The present coin series and the most recent commemorative coin issues are also shown.

Government debt
The Nationalbank is responsible for the administration of domestic and foreign central-government borrowing. This section describes the principles for government debt management.

For further information, please contact Mr. Bjarne Skafte on telephone +45 33 63 60 22.

Uncertainty concerning the compilation of the balance of payments

August 14, 1998
The difference between the compilation of the external payments statistics by Danmarks Nationalbank and of the balance of payments by Statistics Denmark has recently given rise to justified uncertainty concerning the development in the balance of payments. For the 12-month period from June 1997 to May 1998 the Nationalbank's external payments statistics show a surplus of kr. 8.6 billion, whereas the compilation of the balance of payments by Statistics Denmark shows a deficit of kr. 4.2 billion. The difference is thus kr. 12.8 billion.

The difference is due to different compilation principles, as well as differences in the underlying data.

The most fundamental difference in the compilation principles is that the external payments statistics record revenues and disbursements in connection with trade of goods at the time of payment, whereas in the balance of payments they are recorded at the time of transaction, i.e. when the goods are actually imported or exported. Due to the extensive use of supplier credits payment will typically take place some months after the date of transaction.

Normally the difference in the date of registration will be of no great significance when viewed over a 12-month period. However, for some periods the difference is considerable. In the actual situation attention should be drawn to the fact that the negative impact of the labour market conflict on the balance of payments is reflected immediately in Statistics Denmark's statistics for April and May, but will only have a full impact on the external payments statistics in the coming months, as the payments are effected.

Furthermore, there are a number of other small differences in the compilation methods, including differences concerning the compilation of interest and dividend.

Differences in the underlying data present the greatest problem. The foreign-trade statistics of Statistics Denmark are based on reports from the customs authorities and as from 1993 also from business enterprises. The Nationalbank's foreign-exchange statistics are based on payments via Danish banks.

The problem consists of a lack of consistency between the two types of report and is shown by the fact that since 1993 goods payments in the external payments statistics and Statistics Denmark's statistics for import and export of goods have not developed in parallel, in contrast to previously.

This problem is in fact not unique to Denmark. Other EU member states face problems of the same type.

Danmarks Nationalbank and Statistics Denmark have worked intensively on these problems since they became apparent in 1995. This work is coordinated by a liaison group which also includes representatives from the Ministry of Economic Affairs.

At Danmarks Nationalbank extensive reorganization of the external payments statistics has been under preparation for some time. The new system will be implemented in October 1998, followed by a period of introduction. This reorganization will significantly improve opportunities for detailed comparison of the external payments statistics with Statistics Denmark's import and export data. As a consequence of the differing registration principles it is, however, required that the new system be run in and have been in operation for a certain period before any meaningful comparisons can be made.

At Statistics Denmark, an extensive range of controls of data on foreign trade have been made since 1995, including by comparing the figures with information from the VAT system and by comparison with other countries' statistics for trade with Denmark. The results of these controls are reported on an ongoing basis in "The quality of the foreign-trade statistics", which is available in Danish.

Danmarks Nationalbank and Statistics Denmark are aware of the uncertaintyentailedbythesediffering statistics. Work will be done to settle this problem in 1999 when the detailed analyses of the correlation between goods payments in the external payments statistics and Statistics Denmark's data on foreign trade can take place.

"to be continued on next page"