Foreign Exchange and Liquidity and Monthly Balance Sheet, January 2020

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2020
Published 4 February 2020
​In January 2020, the foreign-exchange reserve decreased by kr. 14.9 billion to kr. 426.3 billion.

THE FOREIGN-EXCHANGE RESERVE

In January 2020, the foreign-exchange reserve decreased by kr. 14.9 billion to kr. 426.3 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 14.8 billion, and the central government's net repayment of foreign debt for kr. 0.1 billion, cf. table 1.

In January, Danmarks Nationalbank's net sale of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 12.1 billion.

Danmarks Nationalbank's net foreign-exchange purchases and the change in the foreign-exchange reserve - table 1

Kr. billionJanuary 2020
Danmarks Nationalbank's interventions* to purchase foreign exchange, net-12.1
Other**-2.8
Danmarks Nationalbank's net foreign-exchange purchases-14.8
The central government's net foreign borrowing***-0.1
Change in the foreign-exchange reserve-14.9

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, 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.

VALUE ADJUSTMENT OF DANMARKS NATIONALBANK'S PORTFOLIOS FOR 2019

Danmarks Nationalbank has calculated annual value adjustments of its holdings in connection with the preparation of the annual report for 2019.

As a result of value adjustments, etc. the foreign exchange reserve has increased by kr. 5.8 billion and amounts to kr. 441.2 billion at end-2019. Similarly the holdings of domestic bonds have decreased by kr. 0.2 billion and amount to kr. 32.1 billion at end-2019.

The monthly balance sheet is a liquidity statement, the purpose of which is that the net liquidity changes of the monetary-policy instruments as well as of the size of the foreign exchange reserve can be read directly from the balance as changes during the period. Thus the monthly balance sheet does not include value adjustments or accruals, which are solely included in Danmarks Nationalbank's annual report.

DEVELOPMENT IN LIQUIDITY

In January, the central government's net financing requirement amounted to kr. -22.7 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 28.3 billion in January, to an outstanding amount of kr. 202.3 billion. In January, Danmarks Nationalbank's net foreign-exchange purchases decreased the net position by kr. 14.8 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 2020
The central government's net financing-22.7
Redemption on domestic central-government debt*8.1
Net bond purchases by the government funds and own portfolio and financing of social housing10.9
Other**0.2
The central government's gross domestic financing requirement-3.6
The central government's gross domestic borrowing***10.6
The central government's liquidity impact-14.2
Danmarks Nationalbank's net foreign-exchange purchases-14.8
Danmarks Nationalbank's net bond purchases0.1
Other factors****0.7
Change in net position-28.3

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 13 September 2019 the rate of interest on certificates of deposit has been -0,75 pct. p.a.

Enquiries can be directed to press advicer Teis Hald Jensen on tel. +45 3363 6066.

BALANCE SHEET OF DANMARKS NATIONALBANK 31 JANUARY 2020

Assets 2020 2019
1000 kr.31/0131/12
Stock of gold21,672,57017,840,840
Foreign assets389,932,448402,427,984
Claims on the International Monetary Fund18,554,81818,226,010
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB32,00637,892
Monetary-policy lending--
Other lending1,463,9712,090,994
- Banks'1)1,463,9712,090,994
- Miscellaneous loans--
Domestic bonds32,209,44832,346,179
Financial fixed assets, etc.184,405184,405
Tangible and intangible fixed assets684,168686,942
Other assets277,656577,813
465,011,490474,419,059

1) Including loans financing decentralised banknote holdings.

Liabilities 2020 2019
1000 kr.31/0131/12
Banknotes62,318,30964,430,481
Coins6,103,2666,121,076
Monetary-policy deposits202,290,786230,566,308
- Current accounts31,351,78631,205,308
- Certificates of deposit170,939,000199,361,000
Other deposits12,270,21111,779,926
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB32,00637,892
- Other deposits from banks' and mortgage credit institutes'2,797,0622,366,105
- Miscellaneous deposits9,441,1439,375,929
Central government84,634,59170,410,935
Foreign liabilities3,882,1013,100,663
Counterpart of Special Drawing Rights allocated by the IMF (SDR)14,137,49013,880,049
Other liabilities5,685,527440,412
Capital and reserves73,689,20973,689,209
465,011,490474,419,059

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.