Danmarks Nationalbank prepares a liquidity projection providing an overview of the expected changes in the krone liquidity on a daily basis. The liquidity projection forms the basis for Danmarks Nationalbank's planned purchase and sale of certificates of deposit.
In effect, Danmarks Nationalbank's liquidity projection is a projection of government payments, for which monthly and daily breakdowns are prepared and published.
Monthly breakdowns of government payments
Danmarks Nationalbank prepares and publishes a monthly breakdown of government payments. A total of four monthly breakdowns are published every fiscal year. The monthly breakdowns are based on government finance estimates from the Ministry of Finance published in
- The Budget Proposal (August)
- The Budget (December)
- Economic Survey, May
- Economic Survey, August
Moreover, the Ministry of Finance publishes Economic Survey in December, but Danmarks Nationalbank publishes no monthly breakdown based on this, as there is less than one month left of the current fiscal year at the time of publication.
Based on the Ministry of Finance's estimate of government finances, the major items are allocated to different months according to payment patterns in previous years as well as details of changes in due dates for payments, e.g. as a consequence of new legislation.
Daily breakdown of government payments
On the basis of Danmarks Nationalbank's monthly breakdown of government payments, a daily breakdown of government payments is prepared. The purpose is to estimate the liquidity requirements of the monetary-policy counterparties. The daily breakdown is published on the penultimate banking day of each month and presents the day-by-day projection of government payments, as well as Danmarks Nationalbank's planned purchase and sale of certificates of deposit over the following two months.
For further information see "Liquidity Management in Denmark".