Foreign Exchange and Liquidity and Monthly Balance Sheet, September 2019

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2019
Published 2 October 2019
​In September 2019, the foreign-exchange reserve decreased by kr. 1.6 billion to kr. 445.0 billion.

THE FOREIGN-EXCHANGE RESERVE

In September 2019, the foreign-exchange reserve decreased by kr. 1.6 billion to kr. 445.0 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 1.5 billion, and the central government's net repayment of foreign debt for kr. 0.1 billion, cf. table 1.

In September, 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. billionSeptember 2019January 2019 - September 2019
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.0-1.9
Other**-1.5-11.5
Danmarks Nationalbank's net foreign-exchange purchases-1.5-13.4
The central government's net foreign borrowing***-0.1-0.7
Change in the foreign-exchange reserve-1.6-14.0

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 September, the central government's net financing requirement amounted to kr. -21.8 billion. Since the turn of the year, the central government's net financing requirement has been kr. -6.2 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 3.4 billion in September, to an outstanding amount of kr. 218.9 billion. In September, the central government's liquidity impact increased the net position by kr. 4.9 billion.

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

Kr. billionSeptember 2019January 2019 - September 2019
The central government's net financing-21.8-6.2
Redemption on domestic central-government debt*10.252.5
Net bond purchases by the government funds and own portfolio and financing of social housing0.546.1
Other**0.11.1
The central government's gross domestic financing requirement-11.193.4
The central government's gross domestic borrowing***-16.073.4
The central government's liquidity impact4.920.1
Danmarks Nationalbank's net foreign-exchange purchases-1.5-13.4
Danmarks Nationalbank's net bond purchases0.00.6
Other factors****0.00.7
Change in net position3.48.0

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, 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 13 September 2019 the rate of interest on certificates of deposit has been -0,75 pct. p.a.

Enquiries can be directed to press advicer Teis Hald Jensen on tel. +45 3363 6066.

BALANCE SHEET OF DANMARKS NATIONALBANK 30 SEPTEMBER 2019

Assets 2019 2019
1000 kr.30/0931/08
Stock of gold17,840,84017,840,840
Foreign assets414,004,557415,011,730
Claims on the International Monetary Fund18,390,32318,390,323
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB28,58132,643
Monetary-policy lending--
Other lending1,432,0161,375,894
- Banks'1)1,432,0161,375,894
- Miscellaneous loans--
Domestic bonds33,200,24533,200,245
Financial fixed assets, etc.184,405184,405
Tangible and intangible fixed assets693,755694,811
Other assets694,699732,029
486,469,421487,462,920

1) Including loans financing decentralised banknote holdings.

Liabilities 2019 2019
1000 kr.30/0931/08
Banknotes62,549,25562,819,818
Coins6,120,9846,118,940
Monetary-policy deposits218,872,360215,467,282
- Current accounts31,228,36031,189,282
- Certificates of deposit187,644,000184,278,000
Other deposits14,104,89313,899,175
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB28,58132,643
- Other deposits from banks' and mortgage credit institutes'2,682,4862,452,565
- Miscellaneous deposits11,393,82611,413,967
Central government91,579,31496,483,526
Foreign liabilities5,245,3654,682,082
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,880,04913,880,049
Other liabilities427,992422,839
Capital and reserves73,689,20973,689,209
486,469,421487,462,920

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.