Foreign Exchange and Liquidity and Monthly Balance Sheet, July 2020

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2020
Published 4 August 2020
​In July 2020, the foreign-exchange reserve decreased by kr. 0.1 billion to kr. 455.6 billion.

THE FOREIGN-EXCHANGE RESERVE

In July 2020, the foreign-exchange reserve decreased by kr. 0.1 billion to kr. 455.6 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 0.1 billion, cf. table 1.

In July, 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. billionJuly 2020January 2020 - July 2020
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.0-77.7
Other**-0.1-4.5
Danmarks Nationalbank's net foreign-exchange purchases-0.1-82.2
The central government's net foreign borrowing***0.096.6
Change in the foreign-exchange reserve-0.114.4

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 July, the central government's net financing requirement amounted to kr. 31.5 billion. Since the turn of the year, the central government's net financing requirement has been kr. 98.5 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 17.7 billion in July, to an outstanding amount of kr. 163.9 billion. In July, transactions by the central government increased the net position by kr. 16.9 billion.

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

Kr. billionJuly 2020January 2020 - July 2020
The central government's net financing31.598.5
Redemption on domestic central-government debt*9.436.1
Net bond purchases by the government funds and own portfolio and financing of social housing0.111.3
Other**0.10.6
The central government's gross domestic financing requirement41.0146.5
The central government's gross domestic borrowing***24.2132.9
The central government's liquidity impact16.913.6
Danmarks Nationalbank's net foreign-exchange purchases-0.1-82.2
Danmarks Nationalbank's net bond purchases0.00.9
Other factors****1.01.0
Change in net position17.7-66.7

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 20 March 2020 the rate of interest on certificates of deposit has been -0,60 pct. p.a.

Enquiries can be directed to press advicer Ole Mikkelsen on tel. +45 3363 6027.

BALANCE SHEET OF DANMARKS NATIONALBANK 31 JULY 2020

Assets 2020 2020
1000 kr.31/0730/06
Stock of gold21,672,57021,672,570
Foreign assets413,879,979413,299,600
Claims on the International Monetary Fund22,854,57322,854,573
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB31,18225,920
Monetary-policy lending-4,100,000
Other lending3,659,51013,572,102
- Banks'1)3,659,51013,572,102
- Miscellaneous loans--
Domestic bonds33,037,76233,027,676
Financial fixed assets, etc.192,308192,308
Tangible and intangible fixed assets680,164681,902
Other assets1,209,5811,223,556
497,217,629510,650,207

1) Other lending to banks include loans for cash deposits. In addition, the item includes balances with Danish banks in connection with swap agreements with central banks. The claim amounts to kr. 2.0 billion.

Liabilities 2020 2020
1000 kr.31/0730/06
Banknotes66,646,19066,797,876
Coins6,155,2036,152,906
Monetary-policy deposits163,886,012150,239,664
- Current accounts30,569,01227,240,664
- Certificates of deposit133,317,000122,999,000
Other deposits9,899,86820,758,921
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB31,18225,920
- Other deposits from banks' and mortgage credit institutes'2,176,9722,976,701
- Miscellaneous deposits 2)7,691,71417,756,300
Central government153,785,878170,563,198
Foreign liabilities2,775,8472,069,479
Counterpart of Special Drawing Rights allocated by the IMF (SDR)14,137,49014,137,490
Other liabilities145,673145,205
Capital and reserves79,785,46879,785,468
497,217,629510,650,207

2) The balance sheet item includes balances in connection with swap agreements with central banks. The deposits amount to kr. 2.0 billion.

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.