Foreign Exchange and Liquidity and Monthly Balance Sheet, July 2018

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2018
Published 2 August 2018
​In July 2018, the foreign-exchange reserve decreased by kr. 60 million to kr. 468.1 billion.

THE FOREIGN-EXCHANGE RESERVE

In July 2018, the foreign-exchange reserve decreased by kr. 60 million to kr. 468.1 billion. The decrease reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 82 million, and the central government's net repayment of foreign debt for kr. 142 million, 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 2018January 2018 - July 2018
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.00.0
Other**0.16.9
Danmarks Nationalbank's net foreign-exchange purchases0.16.9
The central government's net foreign borrowing***-0.1-0.6
Change in the foreign-exchange reserve-0.16.3

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. 36.5 billion. Since the turn of the year, the central government's net financing requirement has been kr. -2.0 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 35.1 billion in July, to an outstanding amount of kr. 197.0 billion. In July, transactions by the central government increased the net position by kr. 32.3 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 2018January 2018 - July 2018
The central government's net financing36.5-2.0
Redemption on domestic central-government debt*0.05.3
Net bond purchases by the government funds and own portfolio0.924.5
Other**0.10.8
The central government's gross domestic financing requirement37.628.7
The central government's gross domestic borrowing***5.329.8
The central government's liquidity impact32.3-1.2
Danmarks Nationalbank's net foreign-exchange purchases0.16.9
Danmarks Nationalbank's net bond purchases0.30.1
Other factors****2.41.2
Change in net position35.17.0

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.

*** 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. p.a., since 1 June 2012 the current-account interest rate has been 0,00 pct. p.a., since 20 January 2015 the lending rate has been 0,05 pct. p.a. and since 8 January 2016 the rate of interest on certificates of deposit has been -0,65 pct. p.a.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 31 JULY 2018

Assets 2018 2018 2017
1000 kr.31/0730/0631/07
Stock of gold17,220,28217,220,28217,491,210
Foreign assets436,757,155436,166,317435,411,115
Claims on the International Monetary Fund16,052,03816,060,75316,535,969
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB39,80237,50744,406
Monetary-policy lending---
Other lending1,835,5701,566,3222,175,264
- Banks'1)1,835,5701,566,3222,175,264
- Misc. loans---
Domestic bonds33,026,65932,743,01432,769,634
Financial fixed assets, etc.184,063184,063184,063
Tangible and intangible fixed assets631,641629,894618,896
Other assets1,407,5481,559,812536,463
507,154,758506,167,964505,767,020

1) Including loans financing decentralised banknote holdings.

Liabilities 2018 2018 2017
1000 kr.31/0730/0631/07
Banknotes64,809,88764,503,95364,697,734
Coins6,085,7746,068,1886,035,127
Monetary-policy deposits196,967,264161,847,366211,712,783
- Net current accounts31,016,26430,362,36630,937,783
- Certificates of deposit165,951,000131,485,000180,775,000
Other deposits14,155,14915,993,13116,325,251
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB39,80237,50744,406
- Other deposits from banks' and mortgage credit institutes'599,121672,66256,889
- Misc. deposits13,516,22615,282,96216,223,956
Central government135,844,629168,178,248108,516,241
Foreign liabilities1,966,8921,325,1605,579,489
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,540,98113,540,98114,512,242
Other liabilities70,752997,5074,421,200
Capital and reserves73,713,43073,713,43073,966,953
507,154,758506,167,964505,767,020

Note: The monthly balance sheet is calculated at beginning of year values +/- accumulated transaction values. The monthly balance does not include value adjustments and accruals, as these are only calculated at year-end, cf. Danmarks Nationalbank's accounting principles.