Foreign Exchange and Liquidity and Monthly Balance Sheet, July 2017

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2017
Published 2 August 2017
​In July 2017, the foreign-exchange reserve decreased by kr. 0.05 billion to kr. 463.9 billion.

THE FOREIGN-EXCHANGE RESERVE

In July 2017, the foreign-exchange reserve decreased by kr. 0.05 billion to kr. 463.9 billion. The decrease reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 0.09 billion, and the central government's net repayment of foreign debt for kr. 0.14 billion, cf. table 1.

In July, 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. billionJuly 2017January 2017 - July 2017
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.010.3
Other**0.16.4
Danmarks Nationalbank's net foreign-exchange purchases0.116.7
The central government's net foreign borrowing***-0.1-8.9
Change in the foreign-exchange reserve-0.17.8

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 July, the central government's net financing requirement amounted to kr. 30.9 billion. Since the turn of the year, the central government's net financing requirement has been kr. 10.0 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 26.2 billion in July, to an outstanding amount of kr. 211.7 billion. In July, the central government's liquidity impact increased the net position by kr. 26.6 billion.

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

Kr. billionJuly 2017January 2017 - July 2017
The central government's net financing30.910.0
Redemption on domestic central-government debt*0.00.0
Net bond purchases by the government funds and own portfolio8.632.1
Other**0.01.4
The central government's gross domestic financing requirement39.643.5
The central government's gross domestic borrowing***13.049.1
The central government's liquidity impact26.6-5.6
Danmarks Nationalbank's net foreign-exchange purchases0.116.7
Danmarks Nationalbank's net bond purchases-0.4-0.2
Other factors****-0.1-1.0
Change in net position26.29.9

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.

** 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 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 JULY 2017

Assets 2017 2017 2016
1000 kr.31/0730/0631/07
Stock of gold17,491,21017,491,21015,490,447
Foreign assets435,411,115434,208,799419,075,769
Claims on the International Monetary Fund16,535,96916,651,73417,302,630
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB44,40643,15741,099
Monetary-policy lending---
Other lending2,175,2642,101,3562,969,932
- Banks'1)2,175,2642,101,3562,942,080
- Misc. loans--27,852
Domestic bonds32,769,63433,176,52032,908,141
Financial fixed assets, etc.184,063184,063781,473
Tangible and intangible fixed assets618,896622,927695,677
Other assets536,463774,9551,145,199
505,767,020505,254,721490,410,367

1) Including loans financing decentralised banknote holdings.

Liabilities 2017 2017 2016
1000 kr.31/0730/0631/07
Banknotes64,697,73464,943,77964,472,504
Coins6,035,1276,033,8085,996,995
Monetary-policy deposits211,712,783185,487,143176,565,840
- Net current accounts30,937,78330,635,14331,000,840
- Certificates of deposit180,775,000154,852,000145,565,000
Other deposits16,325,25116,287,85416,414,256
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB44,40643,15741,099
- Other deposits from banks' and mortgage credit institutes'56,889123,373160,899
- Misc. deposits16,223,95616,121,32416,212,258
Central government108,516,241135,137,645135,779,320
Foreign liabilities5,579,4894,439,5071,953,419
Counterpart of Special Drawing Rights allocated by the IMF (SDR)14,512,24214,512,24214,507,188
Other liabilities4,421,2004,445,7903,836,917
Capital and reserves73,966,95373,966,95370,883,928
505,767,020505,254,721490,410,367