Foreign Exchange and Liquidity and Monthly Balance Sheet, August 2018

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2018
Published 4 September 2018
​In August 2018, the foreign-exchange reserve decreased by kr. 174 million to kr. 467.9 billion.

THE FOREIGN-EXCHANGE RESERVE

In August 2018, the foreign-exchange reserve decreased by kr. 174 million to kr. 467.9 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 141 million, and the central government's net repayment of foreign debt for kr. 33 million, cf. table 1.

In August, 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. billionAugust 2018January 2018 - August 2018
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.00.0
Other**-0.16.8
Danmarks Nationalbank's net foreign-exchange purchases-0.16.8
The central government's net foreign borrowing***0.0-0.7
Change in the foreign-exchange reserve-0.26.1

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.

DEVELOPMENT IN LIQUIDITY

In August, the central government's net financing requirement amounted to kr. -13.6 billion. Since the turn of the year, the central government's net financing requirement has been kr. -15.6 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 12.0 billion in August, to an outstanding amount of kr. 185.0 billion. In August, transactions by the central government decreased the net position by kr. 12.7 billion.

Impact of various factors on the net position of the banks and mortgage-credit institutes via-a-vis Danmarks Nationalbank - table 2

Kr. billionAugust 2018January 2018 - August 2018
The central government's net financing-13.6-15.6
Redemption on domestic central-government debt*0.05.3
Net bond purchases by the government funds and own portfolio5.630.1
Other**0.00.8
The central government's gross domestic financing requirement-8.020.6
The central government's gross domestic borrowing***4.634.5
The central government's liquidity impact-12.7-13.8
Danmarks Nationalbank's net foreign-exchange purchases-0.16.8
Danmarks Nationalbank's net bond purchases0.10.2
Other factors****0.71.9
Change in net position-12.0-5.0

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 AUGUST 2018

Assets 2018 2018 2017
1000 kr.31/0831/0731/08
Stock of gold17,220,28617,220,28217,491,210
Foreign assets437,273,241436,757,155435,797,887
Claims on the International Monetary Fund16,054,82016,052,03816,714,768
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB40,65539,80246,939
Monetary-policy lending---
Other lending1,771,3261,835,5702,189,373
- Banks'1)1,771,3261,835,5702,189,373
- Misc. loans---
Domestic bonds33,125,70733,026,65932,867,759
Financial fixed assets, etc.184,063184,063184,063
Tangible and intangible fixed assets635,838631,641621,781
Other assets1,636,4651,407,548623,038
507,942,401507,154,758506,536,818

1) Including loans financing decentralised banknote holdings.

Liabilities 2018 2018 2017
1000 kr.31/0831/0731/08
Banknotes63,973,61464,809,88763,857,229
Coins6,087,9206,085,7746,036,842
Monetary-policy deposits184,958,699196,967,264194,954,360
- Net current accounts30,807,69931,016,26430,960,360
- Certificates of deposit154,151,000165,951,000163,994,000
Other deposits14,369,09514,155,14916,236,469
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB40,65539,80246,939
- Other deposits from banks' and mortgage credit institutes'671,442599,121274
- Misc. deposits13,656,99813,516,22616,189,256
Central government148,521,875135,844,629126,967,268
Foreign liabilities2,659,5841,966,8925,589,733
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,540,98113,540,98114,512,242
Other liabilities117,20370,7524,415,722
Capital and reserves73,713,43073,713,43073,966,953
507,942,401507,154,758506,536,818

Note: The monthly balance sheet is calculated at beginning of year values +/- accumulated transaction values. The monthly balance does not include value adjustments and accruals, as these are only calculated at year-end, cf. Danmarks Nationalbank's accounting principles.