Foreign Exchange and Liquidity and Monthly Balance Sheet, December 2019

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2020
Published 3 January 2020
​In December 2019, the foreign-exchange reserve decreased by kr. 5.3 billion to kr. 435.4 billion.

THE FOREIGN-EXCHANGE RESERVE

In December 2019, the foreign-exchange reserve decreased by kr. 5.3 billion to kr. 435.4 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 5.3 billion, cf. table 1.

In December, Danmarks Nationalbank's net sale of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 4.1 billion.

Danmarks Nationalbank's net foreign-exchange purchases and the change in the foreign-exchange reserve - table 1

Kr. billionDecember 2019January 2019 - December 2019
Danmarks Nationalbank's interventions* to purchase foreign exchange, net-4.1-7.6
Other**-1.2-15.2
Danmarks Nationalbank's net foreign-exchange purchases-5.3-22.9
The central government's net foreign borrowing***0.0-0.8
Change in the foreign-exchange reserve-5.3-23.6

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 December, the central government's net financing requirement amounted to kr. -1.4 billion. In 2019, the central government's net financing requirement has been kr. -7.7 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 9.5 billion in December, to an outstanding amount of kr. 230.6 billion. In December, transactions by the central government increased the net position by kr. 13.4 billion.

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

Kr. billionDecember 2019January 2019 - December 2019
The central government's net financing-1.4-7.7
Redemption on domestic central-government debt*6.592.0
Net bond purchases by the government funds and own portfolio and financing of social housing-1.944.2
Other**0.01.2
The central government's gross domestic financing requirement3.2129.6
The central government's gross domestic borrowing***-10.288.3
The central government's liquidity impact13.441.3
Danmarks Nationalbank's net foreign-exchange purchases-5.3-22.9
Danmarks Nationalbank's net bond purchases0.4-0.2
Other factors****1.01.6
Change in net position9.519.7

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 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 Ole Mikkelsen on tel. +45 3363 6027.

BALANCE SHEET OF DANMARKS NATIONALBANK 31 DECEMBER 2019

Assets 2019 2019
1000 kr.31/1230/11
Stock of gold17,840,84017,840,840
Foreign assets402,427,984410,622,846
Claims on the International Monetary Fund18,226,01018,254,344
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB37,89237,825
Monetary-policy lending--
Other lending2,090,9941,394,861
- Banks'1)2,090,9941,394,861
- Miscellaneous loans--
Domestic bonds32,346,17931,930,113
Financial fixed assets, etc.184,405184,405
Tangible and intangible fixed assets686,942689,664
Other assets577,813609,961
474,419,059481,564,859

1) Including loans financing decentralised banknote holdings.

Liabilities 2019 2019
1000 kr.31/1230/11
Banknotes64,430,48162,765,305
Coins6,121,0766,120,906
Monetary-policy deposits230,566,308221,055,588
- Current accounts31,205,30831,355,588
- Certificates of deposit199,361,000189,700,000
Other deposits11,779,92613,783,771
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB37,89237,825
- Other deposits from banks' and mortgage credit institutes'2,366,1052,691,381
- Miscellaneous deposits9,375,92911,054,565
Central government70,410,93583,843,133
Foreign liabilities3,100,6636,006,107
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,880,04913,880,049
Other liabilities440,412420,791
Capital and reserves73,689,20973,689,209
474,419,059481,564,859

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.