Monetary and Financial Trends - Stable krone and calm money market

Report - March 2017 - No. 2

Authors Danmarks Nationalbank
Subject Monetary Policy
Type Report
Year 2017
Published 15 March 2017
In recent months the Danish krone has been stable vis-á-vis the euro at a slightly stronger level than the central rate. In February, demand for kroner rose due to increased focus on uncertainty about the outcome of the upcoming elections in Europe. Hence, Danmarks Nationalbank intervened and sold kroner for kr. 4.7 billion in February. Danmarks Nationalbank has kept the rate of interest on certificates of deposit at -0.65 per cent since January 2016. Money market rates in Denmark and the euro area have been stable for an extended period of time. Fluctuations in short-term Danish money market rate have been reduced after Danmarks Nationalbank's introduction of daily purchases and sales of certificates of deposit.