Press releases are short texts about important news from Danmarks Nationalbank. Press releases are primarily aimed at journalists or those interested in instant and direct news updates, for example on interest rate changes.

About Danmarks Nationalbank

Foreign Exchange and Liquidity and Monthly Balance Sheet, JUNE 2016

In June 2016, the foreign-exchange reserve increased by kr. 25.4 billion to kr. 452.3 billion.


Share

THE FOREIGN-EXCHANGE RESERVE

In June 2016, the foreign-exchange reserve increased by kr. 25.4 billion to kr. 452.3 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 25.5 billion, and the central government's net repayment of foreign debt for kr. 0.1 billion, cf. table 1.

In June, Danmarks Nationalbank’s net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 25.2 billion. The majority of the interventions took place prior to the United Kingdom's referendum on 23 June on European Union membership.

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

Kr. billionJune 2016January-June 2016
Danmarks Nationalbank's interventions* to purchase foreign exchange, net25.232.8
Other**0.30.6
Danmarks Nationalbank's net foreign-exchange purchases25.533.3
The central government's net foreign borrowing***-0.1-18.6
Change in the foreign-exchange reserve25.414.8

Note: Details may not add because of rounding and previously published figure may have been revised. 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 June, the central government's net financing requirement amounted to kr. -8.5 billion. Since the turn of the year, the central government’s net financing requirement has been kr. -6.5 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 12.6 billion in June, to an outstanding amount of kr. 143.1 billion. In June, Danmarks Nationalbank’s net foreign-exchange purchases increased the net position by kr. 25.5 billion.

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

Kr. billionJune 2016January-June 2016
The central government's net financing-8.5-6.5
Redemption on domestic central-government debt *0.00.0
Other**4.228.7
The central government's gross domestic financing requirement-4.422.3
The central government's gross domestic borrowing***8.454.9
The central government's liquidity impact-12.7-32.6
Danmarks Nationalbank's net foreign-exchange purchases25.533.3
Danmarks Nationalbank's net bond purchases0.2-1.0
Other factors****-0.4-1.4
Change in net position12.6-1.7

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 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 0.00 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 8 January 2016 the rate of interest on certificates of deposit has been -0.65 per cent.

Enquiries can be directed to Julie Holm Simonsen on tel.: (+45) 33 63 60 22.

Balance sheet of Danmarks Nationalbank 30 june 2016

Assets201620162015
1000 kr.30/0631/0530/06
Stock of gold15,490,44715,490,44715,707,167
Foreign assets420,919,571396,438,540594,123,902
Claims on the International Monetary Fund17,399,55617,402,77217,946,985
Claims related to banks' and mortgage credit
institutes' TARGET accounts in ECB91,23738,8693,059,826
Monetary-policy lending1,200,000-980,415
Other lending2,776,0672,859,7842,724,282
Banks'1)2,747,1462,831,4932,688,749
Misc. loans28,92128,29135,533
Domestic bonds33,011,75532,823,20732,937,129
Financial fixed assets, etc.781,473781,473802,211
Tangible and intangible fixed assets699,674699,475758,768
Other assets1,304,4921,184,9182,027,542
493,674,272467,719,485671,068,227
1) Including loans financing decentralised banknote holdings.
Liabilities201620162015
1000 kr.30/0631/0530/06
Banknotes64,386,46164,193,68662,574,653
Coins5,997,6475,961,5775,930,291
Monetary-policy deposits144,343,033130,584,883296,948,202
Net current accounts25,279,03330,287,883159,861,202
Certificates of deposit119,064,000100,297,000137,087,000
Other deposits16,416,07816,287,30115,871,355
Deposits related to banks' and mortgage credit91,23738,8693,059,826
institutes' TARGET accounts in ECB
Other deposits from banks' and118,69791,55813
mortgage credit institutes'
Misc. deposits16,206,14416,156,87412,811,516
Central government172,104,571159,377,879204,010,482
Foreign liabilities1,522,5942,411,1491,522,258
Counterpart of Special Drawing Rights
allocated by the IMF (SDR)14,507,18814,507,18813,575,439
Other liabilities3,512,7723,511,8942,479,125
Capital and reserves70,883,92870,883,92868,156,422
493,674,272467,719,485671,068,227