Foreign Exchange and Liquidity and Monthly Balance Sheet, December 2017

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2018
Published 3 January 2018
​In December 2017, the foreign-exchange reserve increased by kr. 4.2 billion to kr. 468.4 billion.

THE FOREIGN-EXCHANGE RESERVE

In December 2017, the foreign-exchange reserve increased by kr. 4.2 billion to kr. 468.4 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 4.3 billion, and the central government's net repayment of foreign debt for kr. 0.1 billion, cf. table 1.

In December, 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. billionDecember 2017January 2017 - December 2017
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.010.3
Other**4.311.4
Danmarks Nationalbank's net foreign-exchange purchases4.321.7
The central government's net foreign borrowing***-0.1-9.3
Change in the foreign-exchange reserve4.212.4

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 December, the central government's net financing requirement amounted to kr. 3.0 billion. Since the turn of the year, the central government's net financing requirement has been kr. -20.0 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 8.0 billion in December, to an outstanding amount of kr. 190.0 billion. In December, transactions by the central government increased the net position by kr. 7.7 billion.

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

Kr. billionDecember 2017January 2017 - December 2017
The central government's net financing3.0-20.0
Redemption on domestic central-government debt*44.397.1
Net bond purchases by the government funds and own portfolio-40.2-12.2
Other**3.14.9
The central government's gross domestic financing requirement10.169.8
The central government's gross domestic borrowing***2.398.6
The central government's liquidity impact7.7-28.8
Danmarks Nationalbank's net foreign-exchange purchases4.321.7
Danmarks Nationalbank's net bond purchases0.20.2
Other factors****-4.2-4.9
Change in net position8.0-11.8

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 foreign net financing requirement and changes in net collateral for the government's swap portfolio. The December foreign net financing requirement includes the early repayment of the kr. 3 billion bilateral loan to Ireland.

*** 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 DECEMBER 2017

Assets 2017 2017 2016
1000 kr.31/1230/1131/12
Stock of gold17,491,19717,491,19715,490,447
Foreign assets438,027,616434,766,091422,465,504
Claims on the International Monetary Fund16,420,15616,595,88016,613,881
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB52,23941,56255,208
Monetary-policy lending-30,000-
Other lending2,093,5431,919,0233,528,621
- Banks'1)2,093,5431,919,0233,528,546
- Misc. loans--75
Domestic bonds33,167,67633,011,45633,011,649
Financial fixed assets, etc.184,063184,063184,063
Tangible and intangible fixed assets577,377581,838647,968
Other assets408,716571,6791,140,675
508,422,583505,192,789493,138,016

1) Including loans financing decentralised banknote holdings.

Liabilities 2017 2017 2016
1000 kr.31/1230/1131/12
Banknotes64,963,68163,726,62764,913,157
Coins6,033,3066,032,8906,010,395
Monetary-policy deposits189,967,418182,016,848201,795,744
- Net current accounts28,259,41830,859,84828,918,744
- Certificates of deposit161,708,000151,157,000172,877,000
Other deposits16,333,53016,366,89915,384,645
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB52,23941,56255,208
- Other deposits from banks' and mortgage credit institutes'93725,42836
- Misc. deposits16,280,35416,299,90915,329,400
Central government134,688,844139,455,912110,927,915
Foreign liabilities3,540,9614,697,0753,003,581
Counterpart of Special Drawing Rights allocated by the IMF (SDR)14,512,24214,512,24214,507,188
Other liabilities4,415,6484,417,3435,711,464
Capital and reserves73,966,95373,966,95370,883,928
508,422,583505,192,789493,138,016