Foreign Exchange and Liquidity and Monthly Balance Sheet, October 2018

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2018
Published 2 November 2018
​In October 2018, the foreign-exchange reserve decreased by kr. 298 million to kr. 467.6 billion.

THE FOREIGN-EXCHANGE RESERVE

In October 2018, the foreign-exchange reserve decreased by kr. 298 million to kr. 467.6 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 261 million, and the central government's net repayment of foreign debt for kr. 38 million, cf. table 1.

In October, 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. billionOctober 2018January 2018 - October 2018
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.00.0
Other**-0.36.6
Danmarks Nationalbank's net foreign-exchange purchases-0.36.6
The central government's net foreign borrowing***0.0-0.8
Change in the foreign-exchange reserve-0.35.8

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 October, the central government's net financing requirement amounted to kr. 30.5 billion. Since the turn of the year, the central government's net financing requirement has been kr. 0.6 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 13.3 billion in October, to an outstanding amount of kr. 177.2 billion. In October, the central government's liquidity impact increased the net position by kr. 13.4 billion.

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

Kr. billionOctober 2018January 2018 - October 2018
The central government's net financing30.50.6
Redemption on domestic central-government debt*0.06.6
Net bond purchases by the government funds and own portfolio3.442.4
Other**0.11.1
The central government's gross domestic financing requirement34.150.7
The central government's gross domestic borrowing***20.772.6
The central government's liquidity impact13.4-21.9
Danmarks Nationalbank's net foreign-exchange purchases-0.36.6
Danmarks Nationalbank's net bond purchases-0.20.0
Other factors****0.42.6
Change in net position13.3-12.8

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.

*** 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 press advicer Ole Mikkelsen on tel.: (+45) 33 63 60 27.

BALANCE SHEET OF DANMARKS NATIONALBANK 31 OCTOBER 2018

Assets 2018 2018 2017
1000 kr.31/1030/0931/10
Stock of gold17,220,28617,220,28617,491,210
Foreign assets437,800,496438,573,212434,397,751
Claims on the International Monetary Fund16,382,12416,054,82016,714,768
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB79,15183,39938,163
Monetary-policy lending---
Other lending1,759,7161,718,0051,732,285
- Banks'1)1,759,7161,718,0051,732,285
- Miscellaneous loans---
Domestic bonds32,895,72533,125,70732,716,331
Financial fixed assets, etc.184,063184,063184,063
Tangible and intangible fixed assets667,469667,227585,964
Other assets1,500,2551,649,742459,316
508,489,285509,276,461504,319,851

1) Including loans financing decentralised banknote holdings.

Liabilities 2018 2018 2017
1000 kr.31/1030/0931/10
Banknotes63,335,47063,763,57163,307,589
Coins6,099,8816,099,4406,034,470
Monetary-policy deposits177,198,499163,932,218180,029,920
- Current accounts31,133,49930,673,21829,958,920
- Certificates of deposit146,065,000133,259,000150,071,000
Other deposits12,789,40614,114,03516,331,462
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB79,15183,39938,163
- Other deposits from banks' and mortgage credit institutes'1,001,955474,21112,629
- Miscellaneous deposits11,708,30013,556,42516,280,670
Central government156,590,558169,987,644141,375,378
Foreign liabilities3,841,1733,988,2534,333,796
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,540,98113,540,98114,512,242
Other liabilities1,379,887136,8894,428,041
Capital and reserves73,713,43073,713,43073,966,953
508,489,285509,276,461504,319,851

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.