Examples of specific tasks performed by Banking and Markets:
We are responsible for the implementation of the fixed exchange rate policy, investment of the foreign exchange reserve and management of central government debt.
We prepare the overall investment and risk strategy for the foreign exchange reserve and the domestic krone portfolio, ensure risk management of the foreign exchange reserve and central government debt (including operational risks), perform quantitative modelling of financial risks (including market and credit risks) and draw up guidelines for responsible investments for Danmarks Nationalbank.
We are a banker to the banks and to the central government. We are responsible for payment systems, collateral, settlement of trades and portfolio management, and we manage the most critical system for payments and monetary policy instruments.
We maintain and develop new business functionality in the bank’s critical banking system and maintain the bank’s SWIFT application for exchange of financial messages. We are also the link between business users and Danmarks Nationalbank’s IT department.
We are responsible for ensuring a successful migration of Danish kroner to the pan-European payment and securities settlement platform, TARGET Services, in 2025, and for ensuring that the portfolio management system supports the Danish monetary policy instruments and collateral in 2025. In addition, we ensure that we have a robust Danish payment infrastructure for the benefit of society also in the future.
Head of Department Martin Wagner Toftdahl answers three questions about the work in Banking and Markets:
How do you contribute to Danmarks Nationalbank’s work to ensure a robust economy?
“Banking and Markets is responsible for the implementation of a number of Danmarks Nationalbank’s core tasks. We implement the fixed exchange rate policy, act as a banker to the banks, invest and manage foreign exchange reserve risks and are responsible for handling and securing the day-to-day settlement of payments and securities. In addition, we manage the central government debt on behalf of the Ministry of Finance.”
What makes your area particularly exciting?
“The employees in Banking and Markets work at the heart of Danmarks Nationalbank’s core tasks. The tasks we carry out in our department have a very clear and direct effect on the society around us.
It is of direct importance to society when we act in the money and foreign exchange markets to secure the fixed exchange rate policy and when we handle the day-to-day settlement of payments and securities in Danish kroner. But our work also has a direct effect on society through the establishment of a framework for the foreign exchange reserve and optimisation of the earnings from it or through our determination and execution of the issuance strategy for central government debt.
The specific tasks we perform in Banking and Market come with great responsibility, which makes for an exciting and meaningful everyday working life.”
What opportunities and challenges are there in your area?
“Banking and Markets offer the opportunity to work with tasks that are completely unique to Danmarks Nationalbank. At the same time, our department has a broad external interface with ongoing dialogue and broad cooperation with the financial sector, with ministries, international organisations, suppliers and investors. This gives us both unique and broad insight into financial markets and products.”