Foreword

Danmarks Nationalbank is the central bank of Denmark. Danmarks Nationalbank was established in 1818 and has been a self-governing institution since 1936. The legal basis for Danmarks Nationalbank's activities is the Danmarks Nationalbank Act of 1936, according to which Danmarks Nationalbank's objective is to maintain a safe and secure currency system in Denmark, and to facilitate and regulate the traffic in money and the extension of credit. In its formulation of monetary policy Danmarks Nationalbank is independent of the Folketing (Parliament) and the Government.

The Report and Accounts of Danmarks Nationalbank comprise a presentation and description of Danmarks Nationalbank's Accounts for the year 2005, and the Report of the Board of Governors. The Report of the Board of Governors presents recent trends in the Danish economy, the monetary and foreign-exchange-rate policy and the development in financial and foreign-exchange markets, as well as a review of international monetary cooperation, together with Danmarks Nationalbank's other areas of operation and its organisation.

In the quarterly monetary reviews Danmarks Nationalbank publishes articles on recent trends in a number of areas – including the Danish economy, monetary policy, financial conditions, statistics, banknotes and coins, payment systems, the euro and cooperation within the EU. Articles related to research and development work, often still ongoing, are published electronically as Working Papers. Moreover, Danmarks Nationalbank assesses the stability of the Danish financial sector in the annual Financial Stability publication.

Copenhagen, 2 March 2006

Nils Bernstein          Torben Nielsen          Jens Thomsen