Foreign Exchange and Liquidity and Monthly Balance Sheet, August 2019

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2019
Published 3 September 2019
​In August 2019, the foreign-exchange reserve decreased by kr. 1.5 billion to kr. 446.6 billion.

THE FOREIGN-EXCHANGE RESERVE

In August 2019, the foreign-exchange reserve decreased by kr. 1.5 billion to kr. 446.6 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 1.5 billion, 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 2019January 2019 - August 2019
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.0-1.9
Other**-1.5-10.0
Danmarks Nationalbank's net foreign-exchange purchases-1.5-11.9
The central government's net foreign borrowing***0.0-0.5
Change in the foreign-exchange reserve-1.5-12.5

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. -12.4 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. 26.0 billion in August, to an outstanding amount of kr. 215.5 billion. In August, transactions by the central government decreased the net position by kr. 25.1 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 2019January 2019 - August 2019
The central government's net financing-12.415.6
Redemption on domestic central-government debt*1.842.3
Net bond purchases by the government funds and own portfolio and financing of social housing-0.745.5
Other**0.11.0
The central government's gross domestic financing requirement-11.2104.5
The central government's gross domestic borrowing***13.889.3
The central government's liquidity impact-25.115.2
Danmarks Nationalbank's net foreign-exchange purchases-1.5-11.9
Danmarks Nationalbank's net bond purchases0.20.6
Other factors****0.40.7
Change in net position-26.04.6

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, 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 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 press advicer Ole Mikkelsen on tel. +45 3363 6027.

BALANCE SHEET OF DANMARKS NATIONALBANK 31 AUGUST 2019

Assets 2019 2019
1000 kr.31/0831/07
Stock of gold17,840,84017,840,840
Foreign assets415,011,730415,591,317
Claims on the International Monetary Fund18,390,32318,382,362
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB32,64332,775
Monetary-policy lending--
Other lending1,375,8942,115,674
- Banks'1)1,375,8942,115,674
- Miscellaneous loans--
Domestic bonds33,200,24533,001,285
Financial fixed assets, etc.184,405184,405
Tangible and intangible fixed assets694,811689,171
Other assets732,029572,075
487,462,920488,409,904

1) Including loans financing decentralised banknote holdings.

Liabilities 2019 2019
1000 kr.31/0831/07
Banknotes62,819,81864,200,833
Coins6,118,9406,116,900
Monetary-policy deposits215,467,282241,461,265
- Current accounts31,189,28231,280,265
- Certificates of deposit184,278,000210,181,000
Other deposits13,899,17513,530,487
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB32,64332,775
- Other deposits from banks' and mortgage credit institutes'2,452,5652,117,317
- Miscellaneous deposits11,413,96711,380,395
Central government96,483,52671,410,399
Foreign liabilities4,682,0823,709,645
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,880,04913,880,049
Other liabilities422,839411,117
Capital and reserves73,689,20973,689,209
487,462,920488,409,904

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.