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Foreign Exchange and Liquidity and Monthly Balance Sheet, January 2018

​In January 2018, the foreign-exchange reserve increased by kr. 2.1 billion to kr. 463.9 billion.


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THE FOREIGN-EXCHANGE RESERVE

In January 2018, the foreign-exchange reserve increased by kr. 2.1 billion to kr. 463.9 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 2.2 billion, and the central government's net repayment of foreign debt for kr. 0.1 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. billionJanuary 2018
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.0
Other**2.2
Danmarks Nationalbank's net foreign-exchange purchases2.2
The central government's net foreign borrowing***-0.1
Change in the foreign-exchange reserve2.1

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, 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.

VALUE ADJUSTMENT OF THE FOREIGN-EXCHANGE RESERVE FOR 2017

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. 6.6 billion, so that at the end of 2017 the foreign-exchange reserve was kr. 461.8 billion.

DEVELOPMENT IN LIQUIDITY

In January, the central government's net financing requirement amounted to kr. -11.4 billion. cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 18.1 billion in January, to an outstanding amount of kr. 171.9 billion. In January, transactions by the central government decreased the net position by kr. 21.8 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 2018
The central government's net financing-11.4
Redemption on domestic central-government debt*0.0
Net bond purchases by the government funds and own portfolio1.1
Other**0.0
The central government's gross domestic financing requirement-10.3
The central government's gross domestic borrowing***11.5
The central government's liquidity impact-21.8
Danmarks Nationalbank's net foreign-exchange purchases2.2
Danmarks Nationalbank's net bond purchases-0.2
Other factors****1.6
Change in net position-18.1

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 8 January 2016 the rate of interest on certificates of deposit has been -0,65 pct. p.a.

Enquiries can be directed to Ole Mikkelsen on tel.: (+45) 33 63 60 27.

BALANCE SHEET OF DANMARKS NATIONALBANK 31 JANUARY 2018

Assets 2018 2017 2017
1000 kr.31/0131/1231/01
Stock of gold17,220,28417,491,19717,491,210
Foreign assets433,808,195438,027,616425,534,649
Claims on the International Monetary Fund15,279,63116,420,15616,556,360
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB43,06052,23945,072
Monetary-policy lending---
Other lending2,326,9102,093,5432,537,518
- Banks'1)2,326,9062,093,5432,537,518
- Misc. loans4--
Domestic bonds32,758,77733,167,67633,098,667
Financial fixed assets, etc.184,063184,063221,563
Tangible and intangible fixed assets634,913577,377640,922
Other assets1,727,529408,716587,793
503,983,362508,422,583496,713,754

1) Including loans financing decentralised banknote holdings.

Liabilities 2018 2017 2017
1000 kr.31/0131/1231/01
Banknotes63,148,23664,963,68163,237,589
Coins6,025,7476,033,3065,966,931
Monetary-policy deposits171,874,274189,967,418188,903,100
- Net current accounts31,000,27428,259,41829,421,100
- Certificates of deposit140,874,000161,708,000159,482,000
Other deposits16,430,00116,333,53015,401,549
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB43,06052,23945,072
- Other deposits from banks' and mortgage credit institutes'-93778
- Misc. deposits16,386,94116,280,35415,356,398
Central government156,467,395134,688,844126,144,006
Foreign liabilities2,417,7613,540,9611,751,373
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,540,98114,512,24214,512,242
Other liabilities112,0144,415,6489,913,036
Capital and reserves73,966,95373,966,95370,883,928
503,983,362508,422,583496,713,754