Foreign Exchange and Liquidity and Monthly Balance Sheet, FEBRUARY 2015

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2015
Published 3 March 2015
Abstract icon In February 2015, the foreign-exchange reserve increased by kr. 172.9 billion to kr. 737.1 billion. Danmarks Nationalbank’s net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 168.7 billion. The main part of the interventions took place during the days around the interest rate reduction on 5 February. In the latter part of February, Danmarks Nationalbank did not intervene in the foreign-exchange market.

THE FOREIGN-EXCHANGE RESERVE

In February 2015, the foreign-exchange reserve increased by kr. 172.9 billion to kr. 737.1 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 174.0 billion, and the central government's net repayment of foreign debt for kr. 1.1 billion, cf. table 1.

In February, Danmarks Nationalbank’s net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 168.7 billion. The main part of the interventions took place during the days around the interest rate reduction on 5 February. In the latter part of February, Danmarks Nationalbank did not intervene in the foreign-exchange market.

DANMARKS NATIONALBANK'S NET FOREIGN-EXCHANGE PURCHASES AND THE CHANGE IN THE FOREIGN-EXCHANGE RESERVE – TABLE 1

Kr. billionFebruary 2015January-February 2015
Danmarks Nationalbank's interventions* to purchase foreign exchange, net168.7274.9
Other**5.45.5
Danmarks Nationalbank's net foreign-exchange purchases174.0280.5
The central government's net foreign borrowing***-1.1-1.0
Change in the foreign-exchange reserve172.9279.5

Note: Details may not add because of rounding. 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 February, the central government's net financing requirement amounted to kr. -19.4 billion. Since the turn of the year, the central government’s net financing requirement has been kr. -25.4 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 155.6 billion in February, to an outstanding amount of kr. 359.3 billion. In February, Danmarks Nationalbank's net foreign-exchange purchases increased the net position by kr. 174.0 billion.

IMPACT OF VARIOUS FACTORS ON THE NET POSITION OF THE BANKS AND MORTGAGE-CREDIT INSTITUTES VIS-À-VIS DANMARKS NATIONALBANK – TABLE 2

Kr. billionFebruary 2015January-February 2015
The central government's net financing-19.4-25.4
Redemption on domestic central-government debt *0.00.0
Other**1.6-6.1
The central government's gross domestic financing requirement-17.8-31.4
The central government's gross domestic borrowing***1.010.5
The central government's liquidity impact-18.8-41.9
Danmarks Nationalbank's net foreign-exchange purchases174.0280.5
Danmarks Nationalbank's net bond purchases0.2-0.7
Other factors****0.11.4
Change in net position155.6239.3

Note: Details may not add because of rounding. All transactions as per settlement date.

*Including krone-denominated payments by the central government in currency swaps.

**Comprises, inter alia, net bond purchases by the government funds and 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 per cent, since 1 June 2012 the current-account interest rate has been 0.00 per cent, since 20 January 2015 the lending rate has been 0.05 per cent and since 6 February 2015 the rate of interest on certificates of deposit has been -0.75 per cent.

Enquiries can be directed to Karsten Biltoft on tel.: (+45) 33 63 60 21.

Balance sheet of Danmarks Nationalbank 28 February 2015

Assets201520152014
1000 kr.28/0231/0128/02
Stock of gold15,707,16715,707,16713,914,740
Foreign assets703,582,482530,264,498442,766,470
Claims on the International Monetary Fund18,854,50119,542,60519,677,960
Claims related to banks' and mortgage credit
institutes' TARGET accounts in ECB19,91332,3691,224,944
Monetary-policy lending473,3021,639,7699,472,312
Other lending3,386,1983,392,2332,598,347
Banks'1)3,347,0183,352,8292,552,911
Misc. loans39,18039,40445,436
Domestic bonds33,011,73232,766,80231,339,669
Shares etc.802,211802,2111,064,711
Tangible and intangible fixed assets757,143754,290741,040
Other assets2,634,1142,079,3328,940,875
779,228,763606,981,276531,741,068
1) Including loans financing decentralised banknote holdings.
Liabilities201520152014
1000 kr.28/0231/0128/02
Banknotes60,102,08459,339,26458,415,293
Coins5,860,1315,877,4215,810,250
Monetary-policy deposits359,795,373205,388,398170,370,182
Net current accounts31,844,37330,797,39858,526,182
Certificates of deposit327,951,000174,591,000111,844,000
Other deposits11,261,93110,688,9609,958,495
Deposits related to banks' and mortgage credit19,91332,3691,224,944
institutes' TARGET accounts in ECB
Other deposits from banks' and145145502
mortgage credit institutes'
Misc. deposits11,241,87310,656,4468,733,049
Central government254,314,456236,559,727202,524,562
Foreign liabilities1,070,9251,388,319995,697
Counterpart of Special Drawing Rights
allocated by the IMF (SDR)13,575,43913,575,43912,773,407
Other liabilities10,288,53511,203,859190,718
Capital and reserves62,959,88962,959,88970,702,464
779,228,763606,981,276531,741,068