THE FOREIGN-EXCHANGE RESERVE
In January 2014 the foreign-exchange reserve increased by kr. 1.7 billion to kr. 475.7 billion. The increase reflects the central government's net borrowing of foreign debt for kr. 1.7 billion, cf. table 1.
In January, 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. billion | January 2014 |
| Danmarks Nationalbank's interventions* to purchase foreign exchange, net ................................................... | 0.0 |
| Other** ............................................................................ | 0.0 |
| Danmarks Nationalbank's net foreign-exchange purchases ........................................................................ | 0.0 |
| The central government's net foreign borrowing*** | 1.7 |
| Change in the foreign-exchange reserve .................... | 1.7 |
Note: Details may not add because of rounding.
* 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 THE FOREIGN-EXCHANGE RESERVE FOR 2013
Danmarks Nationalbank has undertaken a value adjustment of the foreign-exchange reserve. The adjustment has led to net write-down of the foreign-exchange reserve by kr. 11.9 billion, so that at the end of 2013 the foreign-exchange reserve was kr. 474.0 billion.
DEVELOPMENT IN LIQUIDITY
In January the central government's net financing requirement amounted to kr. -0.2 billion, cf. table 2.
The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 19.1 billion in January, to an outstanding amount of kr. 185.1 billion. In January transactions by the central government reduced the net position by kr. 15.9 billion.
IMPACT OF VARIOUS FACTORS ON THE NET POSITION OF THE BANKS
AND MORTGAGE-CREDIT INSTITUTES VIS-À-VIS DANMARKS NATIONALBANK – TABLE 2
| Kr. billion | January 2014 |
| The central government's net financing ..................... | -0.2 |
| Redemption on domestic central-government debt* | 0.0 |
| Other** ........................................................................... | -5.6 |
| The central government's gross domestic financing requirement ................................................................... .......................................................................................... | -5.8 |
| The central government's gross domestic borrowing*** ................................................................ | 10.0 |
| The central government's liquidity impact ................. | -15.9 |
| Danmarks Nationalbank's net foreign-exchange purchases ........................................................................ | 0.0 |
| Danmarks Nationalbank's net bond purchases .......... | -3.5 |
| Other factors**** .......................................................... | 0.2 |
| Change in net position ................................................. | -19.1 |
Note: Details may not add because of rounding.
* Including krone-denominated payments by the central government in currency swaps.
** Comprises, inter alia, net bond purchases by the Social Pension Fund, the High-Technology Foundation and the Financing Fund for increased distributions from the Danish National Research Foundation.
*** 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 0.0 per cent, since 1 June 2012 the current-account interest rate has been 0.0 per cent, since 3 May 2013 the lending rate has been 0.2 per cent and since 25 January 2013 the rate of interest on certificates of deposit has been -0.1 per cent.
Balance sheet of Danmarks Nationalbank 31 January 2014
| Assets | 2014 | 2013 | 2013 |
| 1000 kr. | 31/01 | 31/12 | 31/01 |
| Stock of gold............................................................. | 13,914,740 | 20,148,284 | 20,148,284 |
| Foreign assets............................................................ | 442,387,128 | 447,946,812 | 454,796,603 |
| Claims on the International Monetary Fund............... | 20,016,793 | 20,885,739 | 21,628,975 |
| Claims related to banks' and mortgage credit | |||
| institutes' TARGET accounts in ECB............................ | 680,524 | 3,904,588 | 714,209 |
| Monetary-policy lending............................................ | 11,296,598 | 23,145,472 | 53,204,133 |
| Other lending............................................................ | 2,781,369 | 2,474,671 | 3,371,673 |
| Banks'1)............................................................... | 2,735,515 | 2,428,940 | 3,331,651 |
| Misc. loans.......................................................... | 45,854 | 45,731 | 40,022 |
| Domestic bonds......................................................... | 30,447,758 | 34,472,636 | 33,767,052 |
| Shares etc.................................................................. | 1,064,711 | 1,044,352 | 1,145,634 |
| Tangible and intangible fixed assets.......................... | 732,710 | 738,836 | 672,486 |
| Other assets............................................................... | 9,890,801 | 1,166,585 | 3,585,641 |
| 533,213,132 | 555,927,975 | 593,034,690 | |
| 1) Including loans financing decentralised banknote holdings. | |||
| Liabilities | 2014 | 2013 | 2013 |
| 1000 kr. | 31/01 | 31/12 | 31/01 |
| Banknotes................................................................. | 58,172,060 | 60,681,434 | 56,952,021 |
| Coins......................................................................... | 5,812,895 | 5,809,589 | 5,740,041 |
| Monetary-policy deposits........................................... | 196,373,709 | 227,357,723 | 256,007,761 |
| Net current accounts........................................... | 65,467,709 | 59,325,723 | 94,270,761 |
| Certificates of deposit......................................... | 130,906,000 | 168,032,000 | 161,737,000 |
| Other deposits........................................................... | 8,969,567 | 10,900,072 | 15,691,879 |
| Deposits related to banks' and mortgage credit... | 680,524 | 3,904,588 | 714,209 |
| institutes' TARGET accounts in ECB | |||
| Other deposits from banks' and........................... | 502 | 6,378 | 3,274 |
| mortgage credit institutes' | |||
| Misc. deposits..................................................... | 8,288,541 | 6,989,106 | 14,974,396 |
| Central government................................................... | 179,608,214 | 161,952,562 | 171,418,939 |
| Foreign liabilities...................................................... | 658,132 | 3,125,153 | 996,645 |
| Counterpart of Special Drawing Rights | |||
| allocated by the IMF (SDR)......................................... | 12,773,407 | 13,323,359 | 13,323,359 |
| Other liabilities......................................................... | 142,684 | 2,075,619 | 4,541,357 |
| Capital and reserves................................................... | 70,702,464 | 70,702,464 | 68,362,688 |
| 533,213,132 | 555,927,975 | 593,034,690 |