Foreign Exchange and Liquidity and Monthly Balance Sheet, February 2020

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2020
Published 3 March 2020
​In February 2020, the foreign-exchange reserve increased by kr. 2.7 billion to kr. 429.0 billion.

THE FOREIGN-EXCHANGE RESERVE

In February 2020, the foreign-exchange reserve increased by kr. 2.7 billion to kr. 429.0 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 2.7 billion, cf. table 1.

In February, Danmarks Nationalbank's net sale of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 0.9 billion.

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

Kr. billionFebruary 2020January 2020 - February 2020
Danmarks Nationalbank's interventions* to purchase foreign exchange, net-0.9-13.0
Other**3.60.9
Danmarks Nationalbank's net foreign-exchange purchases2.7-12.1
The central government's net foreign borrowing***0.0-0.1
Change in the foreign-exchange reserve2.7-12.2

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, 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 February, the central government's net financing requirement amounted to kr. -25.2 billion. Since the turn of the year, the central government's net financing requirement has been kr. -47.9 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 26.4 billion in February, to an outstanding amount of kr. 175.9 billion. In February, transactions by the central government decreased the net position by kr. 30.3 billion.

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

Kr. billionFebruary 2020January 2020 - February 2020
The central government's net financing-25.2-47.9
Redemption on domestic central-government debt*2.210.3
Net bond purchases by the government funds and own portfolio and financing of social housing0.711.6
Other**0.10.3
The central government's gross domestic financing requirement-22.2-25.8
The central government's gross domestic borrowing***8.118.7
The central government's liquidity impact-30.3-44.5
Danmarks Nationalbank's net foreign-exchange purchases2.7-12.1
Danmarks Nationalbank's net bond purchases0.10.2
Other factors****1.11.8
Change in net position-26.4-54.6

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 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 29 FEBRUARY 2020

Assets 2020 2020
1000 kr.29/0231/01
Stock of gold21,672,57021,672,570
Foreign assets390,808,838389,932,448
Claims on the International Monetary Fund18,458,27418,554,818
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB49,54432,006
Monetary-policy lending--
Other lending1,738,2461,463,971
- Banks'1)1,738,2461,463,971
- Miscellaneous loans--
Domestic bonds32,310,86832,209,448
Financial fixed assets, etc.192,308184,405
Tangible and intangible fixed assets684,878684,168
Other assets445,141277,656
466,360,667465,011,490

1) Including loans financing decentralised banknote holdings.

Liabilities 2020 2020
1000 kr.29/0231/01
Banknotes62,903,82062,318,309
Coins6,110,3146,103,266
Monetary-policy deposits175,925,470202,290,786
- Current accounts31,343,47031,351,786
- Certificates of deposit144,582,000170,939,000
Other deposits11,035,71712,270,211
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB49,54432,006
- Other deposits from banks' and mortgage credit institutes'3,186,0652,797,062
- Miscellaneous deposits7,800,1089,441,143
Central government114,910,46984,634,591
Foreign liabilities1,972,9413,882,101
Counterpart of Special Drawing Rights allocated by the IMF (SDR)14,137,49014,137,490
Other liabilities5,675,2375,685,527
Capital and reserves73,689,20973,689,209
466,360,667465,011,490

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.