Foreign Exchange and Liquidity and Monthly Balance Sheet, JANUARY 2015

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2015
Published 3 February 2015
In January 2015 the foreign-exchange reserve increased by kr. 106.6 billion to kr. 564.1 billion.

THE FOREIGN-EXCHANGE RESERVE

In January 2015 the foreign-exchange reserve increased by kr. 106.6 billion to kr. 564.1 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 106.5 billion, and the central government's net borrowing of foreign debt for kr. 0.1 billion, cf. table 1.

In January, Danmarks Nationalbank’s net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 106.3 billion.

DANMARKS NATIONALBANK'S NET FOREIGN-EXCHANGE PURCHASES AND THE CHANGE IN THE FOREIGN-EXCHANGE RESERVE – TABLE 1

Kr. billionJanuary 2015
Danmarks Nationalbank's interventions* to purchase foreign exchange, net106.3
Other**0.2
Danmarks Nationalbank's net foreign-exchange purchases106.5
The central government's net foreign borrowing***0.1
Change in the foreign-exchange reserve106.6

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, 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.

VALUE ADJUSTMENT OF THE FOREIGN-EXCHANGE RESERVE FOR 2014

Danmarks Nationalbank has undertaken a value adjustment of the foreign-exchange reserve. The adjustment has led to net write-up of the foreign-exchange reserve by kr. 10.8 billion, so that at the end of 2014 the foreign-exchange reserve was kr. 457.6 billion.

DEVELOPMENT IN LIQUIDITY

In January the central government's net financing requirement amounted to kr. -6.0 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 83.7 billion in January, to an outstanding amount of kr. 203.7 billion. In January, Danmarks Nationalbank’s net foreign-exchange purchases increased the net position by kr. 106.5 billion.

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

Kr. billionJanuary 2015
The central government's net financing-6.0
Redemption on domestic central-government debt*0.0
Other**-7.7
The central government's gross domestic financing requirement-13.7
The central government's gross domestic borrowing***9.5
The central government's liquidity impact-23.2
Danmarks Nationalbank's net foreign-exchange purchases106.5
Danmarks Nationalbank's net bond purchases-0.9
Other factors****1.4
Change in net position83.7

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 Social Pension Fund, the High-Technology Foundation and the Financing Fund for increased distributions from the Danish National Research Foundation.

***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 0.00 per cent, since 1 June 2012 the current-account interest rate has been 0.00 per cent, since 20 January 2015 the lending rate has been 0.05 per cent and since 30 January 2015 the rate of interest on certificates of deposit has been -0.50 per cent.

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

Balance sheet of Danmarks Nationalbank 31 januarY 2015

Assets201520142014
1000 kr.31/0131/1231/01
Stock of gold15,707,16713,914,74013,914,740
Foreign assets530,264,498417,885,541442,387,128
Claims on the International Monetary Fund19,542,60518,323,52320,016,793
Claims related to banks' and mortgage credit
institutes' TARGET accounts in ECB32,369432,592680,524
Monetary-policy lending1,639,76935,039,47411,296,598
Other lending3,392,2332,544,2862,781,369
Banks'1)3,352,8292,504,2612,735,515
Misc. loans39,40440,02545,854
Domestic bonds32,766,80233,854,41130,447,758
Shares etc.802,211802,2111,064,711
Tangible and intangible fixed assets754,290775,889732,710
Other assets2,079,3322,865,6109,890,801
606,981,276526,438,277533,213,132
1) Including loans financing decentralised banknote holdings.
Liabilities201520142014
1000 kr.31/0131/1231/01
Banknotes59,339,26461,459,51758,172,060
Coins5,877,4215,877,8585,812,895
Monetary-policy deposits205,388,398155,078,316196,373,709
Net current accounts30,797,39830,306,31665,467,709
Certificates of deposit174,591,000124,772,000130,906,000
Other deposits10,688,9608,467,1558,969,567
Deposits related to banks' and mortgage credit32,369432,592680,524
institutes' TARGET accounts in ECB
Other deposits from banks' and145394502
mortgage credit institutes'
Misc. deposits10,656,4468,034,1698,288,541
Central government236,559,727213,099,438179,608,214
Foreign liabilities1,388,3193,352,017658,132
Counterpart of Special Drawing Rights
allocated by the IMF (SDR)13,575,43912,773,40712,773,407
Other liabilities11,203,8593,370,680142,684
Capital and reserves62,959,88962,959,88970,702,464
606,981,276526,438,277533,213,132