|
Danmarks Nationalbank's monetary-policy counterparties comprise banks and mortgage-credit institutes. The monetary-policy counterparties have access to the monetary-policy instruments, i.e. they can place liquidity with Danmarks Nationalbank as overnight deposits (current-account deposits) and participate in Danmarks Nationalbank's weekly market operations. In the weekly market operations, counterparties can obtain 7-day loans against collateral in securities, or deposit liquidity for 7 days by purchasing certificates of deposit.
The net positions of the monetary-policy counterparties are their portfolios of certificates of deposit and current-account deposits, less their loans from Danmarks Nationalbank. The net positions are primarily affected by fluctuations in government payments and Danmarks Nationalbank's purchase and sale of foreign exchange. In the weekly market operations, the monetary-policy counterparties normally structure their net positions so that the total current-account deposit covers the expected liquidity requirement for the next week. When major liquidity fluctuations are expected, Danmarks Nationalbank may announce in advance that it will buy back or sell certificates of deposit outside the fixed market operations. Danmarks Nationalbank may also buy back or sell certificates of deposit without prior announcement.
Limits have been set for the size of the monetary-policy counterparties' current-account deposits. The purpose of these limits is to prevent the build-up of large current-account deposits that may be used for speculation in interest-rate and/or exchange-rate changes. If the total limit for the counterparties is exceeded, current-account deposits in excess of the individual limits will be converted into certificates of deposit.
Access to and use of accounts at Danmarks Nationalbank are determined in Danmarks Nationalbank's terms and conditions for accounts (Documentation basis for the monetary-policy instruments).
|
