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About Danmarks Nationalbank

Foreign Exchange and Liquidity and Monthly Balance Sheet, August 2014

In August 2014 the foreign-exchange reserve increased by kr. 0.7 billion to kr. 441.6 billion.


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THE FOREIGN-EXCHANGE RESERVE

In August 2014 the foreign-exchange reserve increased by kr. 0.7 billion to kr. 441.6 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 0.4 billion, and the central government's net borrowing of foreign debt for kr. 0.3 billion, cf. table 1.

In August, 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

Kr. billionAugust 2014January-August 2014
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.0-20.9
Other**0.44.3
Danmarks Nationalbank's net foreign-exchange purchases0.4-16.6
The central government's net foreign borrowing***0.3-15.8
Change in the foreign-exchange reserve0.7-32.4

Note: Details may not add because of rounding. 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, EU-payments, 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 August, the central government's net financing requirement amounted to kr. -14.8 billion. Since the turn of the year, the central government’s net financing requirement has been kr. 5.0 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 28.3 billion in August, to an outstanding amount of kr. 119.4 billion. In August, transactions by the central government reduced the net position by kr. 29.5 billion.

IMPACT OF VARIOUS FACTORS ON THE NET POSITION OF THE BANKS AND MORTGAGE-CREDIT INSTITUTES VIS-À-VIS DANMARKS NATIONALBANK – TABLE 2

Kr. billionAugust 2014January-August 2014
The central government's net financing-14.85.0
Redemption on domestic central-government debt *1.06.7
Other**-1.0-2.2
The central government's gross domestic financing requirement-14.89.5
The central government's gross domestic borrowing***14.771.5
The central government's liquidity impact-29.5-62.1
Danmarks Nationalbank's net foreign-exchange purchases0.4-16.6
Danmarks Nationalbank's net bond purchases0.20.5
Other factors****0.7-6.6
Change in net position-28.3-84.8

Note: Details may not add because of rounding. All transactions as per settlement date.

*Including krone-denominated payments by the central government in currency swaps.

**Comprises, inter alia, net bond purchases by the government funds and 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 6 July 2012 the discount rate has been 0.0 per cent, since 1 June 2012 the current-account interest rate has been 0.0 per cent, since 3 May 2013 the lending rate has been 0.2 per cent and since 25 April 2014 the rate of interest on certificates of deposit has been 0.05 per cent.

Enquiries can be directed to Karsten Biltoft on tel.: (+45) 33 63 60 21.

Balance sheet of Danmarks Nationalbank 31 august 2014

Assets201420142013
1000 kr.31/0831/0731/08
Stock of gold13,914,74013,914,74020,148,284
Foreign assets409,297,770408,300,688451,709,633
Claims on the International Monetary Fund19,439,34319,595,75020,843,719
Claims related to banks' and mortgage credit
institutes' TARGET accounts in ECB33,21222,002465,085
Monetary-policy lending5,123,0895,582,15517,525,506
Other lending2,787,6852,564,6333,399,714
Banks'1)2,746,4762,522,6513,355,789
Misc. loans41,20941,98243,925
Domestic bonds34,418,51634,267,71534,645,263
Shares etc.802,211802,2111,120,656
Tangible and intangible fixed assets758,066755,593707,823
Other assets1,775,6171,628,8341,174,024
488,350,249487,434,321551,739,707
1) Including loans financing decentralised banknote holdings.
Liabilities201420142013
1000 kr.31/0831/0731/08
Banknotes59,711,65259,805,53059,039,446
Coins5,859,4025,857,4375,793,004
Monetary-policy deposits124,547,849153,290,686202,699,004
Net current accounts27,740,84918,054,68651,588,004
Certificates of deposit96,807,000135,236,000151,111,000
Other deposits8,451,3248,665,7559,611,830
Deposits related to banks' and mortgage credit33,21222,002465,085
institutes' TARGET accounts in ECB
Other deposits from banks' and2082083,549
mortgage credit institutes'
Misc. deposits8,417,9048,643,5459,143,196
Central government210,496,265180,597,889188,687,090
Foreign liabilities1,044,267889,459903,180
Counterpart of Special Drawing Rights
allocated by the IMF (SDR)12,773,40712,773,40713,323,359
Other liabilities2,506,1942,594,269980,330
Capital and reserves62,959,88962,959,88970,702,464
488,350,249487,434,321551,739,707