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Foreign Exchange and Liquidity and Monthly Balance Sheet, January 2017

​In January 2017, the foreign-exchange reserve increased by kr. 1.8 billion to kr. 457.8 billion.


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THE FOREIGN-EXCHANGE RESERVE

In January 2017, the foreign-exchange reserve increased by kr. 1.8 billion to kr. 457.8 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 2.0 billion, and the central government's net repayment of foreign debt for kr. 0.2 billion, cf. table 1.

In January, 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. billionJanuary 2017
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.0
Other**2.0
Danmarks Nationalbank's net foreign-exchange purchases2.0
The central government's net foreign borrowing***-0.2
Change in the foreign-exchange reserve1.8

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.

VALUE ADJUSTMENT OF THE FOREIGN-EXCHANGE RESERVE FOR 2016

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. 4,5 billion, so that at the end of 2016 the foreign-exchange reserve was kr. 456.0 billion.

DEVELOPMENT IN LIQUIDITY

In January, the central government's net financing requirement amounted to kr. -2.7 billion.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 12.9 billion in January, to an outstanding amount of kr. 188.9 billion. In January, transactions by the central government decreased the net position by kr. 15.2 billion.

Impact of various factors on the net position of the banks and mortgage-credit institutes via-a-vis Danmarks Nationalbank - table 2

Kr. billionJanuary 2017
The central government's net financing-2.7
Redemption on domestic central-government debt*0.0
Net bond purchases by the government funds and own portfolio-0.2
Other**0.1
The central government's gross domestic financing requirement-2.8
The central government's gross domestic borrowing***12.4
The central government's liquidity impact-15.2
Danmarks Nationalbank's net foreign-exchange purchases2.0
Danmarks Nationalbank's net bond purchases0.0
Other factors****0.4
Change in net position-12.9

Note: Details may not add because of rounding and previously published figure may have been revised. All transactions as per settlement date.

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

** Comprise foreign net financing and net change in collateral related to the government’s swap portfolio.

*** Gross long-term borrowing, net short-term borrowing and krone-denominated payments to the central government in currency swaps.

DAILY MARKET OPERATIONS IN THE MONEY MARKET

As of 1 February 2017, Danmarks Nationalbank introduces buy-back and sale of certificates of deposit on a daily basis in order to support a smooth exchange of liquidity. Also the buy-back premium is raised from 0.05 percentage points to 0.10 percentage points. This is to encourage the monetary-policy counterparties to exchange liquidity among themselves. The measures were announced on 17 January 2017.

DANMARKS NATIONALBANK'S INTEREST RATES

Since 6 July 2012 the discount rate has been 0.00 pct., since 1 June 2012 the current-account interest rate has been 0.00 pct., since 20 January 2015 the lending rate has been 0.05 pct. and since 8 January 2016 the rate of interest on certificates of deposit has been -0.65 pct.

Enquiries can be directed to Ole Mikkelsen on tel.: (+45) 33 63 60 27.

BALANCE SHEET OF DANMARKS NATIONALBANK 31 JANUARY 2017

Assets 2017 2016 2016
1000 kr.31/0131/1231/01
Stock of gold17,491,21015,490,44715,490,447
Foreign assets425,534,649422,465,504395,763,877
Claims on the International Monetary Fund16,556,36016,613,88119,586,506
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB45,07255,20852,914
Monetary-policy lending---
Other lending2,537,5183,528,6212,874,477
- Banks'1)2,537,5183,528,5462,839,634
- Misc. loans-7534,843
Domestic bonds33,098,66733,011,64933,014,137
Financial fixed assets, etc.221,563184,063802,211
Tangible and intangible fixed assets640,922647,968713,470
Other assets587,7931,140,6751,443,319
496,713,754493,138,016469,741,358

1) Including loans financing decentralised banknote holdings.

Liabilities 2017 2016 2016
1000 kr.31/0131/1231/01
Banknotes63,237,58964,913,15762,216,219
Coins5,966,9316,010,3955,948,871
Monetary-policy deposits188,903,100201,795,744126,645,167
- Net current accounts29,421,10028,918,74430,010,167
- Certificates of deposit159,482,000172,877,00096,635,000
Other deposits15,401,54915,384,64515,413,660
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB45,07255,20852,914
- Other deposits from banks' and mortgage credit institutes'783635
- Misc. deposits15,356,39815,329,40015,360,711
Central government126,144,006110,927,915168,607,137
Foreign liabilities1,751,3733,003,5811,154,424
Counterpart of Special Drawing Rights allocated by the IMF (SDR)14,512,24214,507,18814,507,188
Other liabilities9,913,0365,711,4647,092,270
Capital and reserves70,883,92870,883,92868,156,422
496,713,754493,138,016469,741,358