Foreign Exchange and Liquidity and Monthly Balance Sheet, August 2020

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2020
Published 2 September 2020
​In August 2020, the foreign-exchange reserve increased by kr. 26 million to kr. 455.7 billion.

THE FOREIGN-EXCHANGE RESERVE

In August 2020, the foreign-exchange reserve increased by kr. 26 million to kr. 455.7 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 27 million, and the central government's net repayment of foreign debt for kr. 1 million, 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 2020January 2020 - August 2020
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.0-77.7
Other**0.0-4.5
Danmarks Nationalbank's net foreign-exchange purchases0.0-82.2
The central government's net foreign borrowing***0.096.6
Change in the foreign-exchange reserve0.014.4

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 August, the central government's net financing requirement amounted to kr. -0.6 billion. Since the turn of the year, the central government's net financing requirement has been kr. 97.8 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 17.4 billion in August, to an outstanding amount of kr. 146.5 billion. In August, transactions by the central government decreased the net position by kr. 17.9 billion.

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

Kr. billionAugust 2020January 2020 - August 2020
The central government's net financing-0.697.8
Redemption on domestic central-government debt*6.442.5
Net bond purchases by the government funds and own portfolio and financing of social housing0.011.3
Other**0.00.5
The central government's gross domestic financing requirement5.7152.2
The central government's gross domestic borrowing***23.6156.5
The central government's liquidity impact-17.9-4.3
Danmarks Nationalbank's net foreign-exchange purchases0.0-82.2
Danmarks Nationalbank's net bond purchases0.11.0
Other factors****0.41.3
Change in net position-17.4-84.1

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 AUGUST 2020

Assets 2020 2020
1000 kr.31/0831/07
Stock of gold21,672,57021,672,570
Foreign assets413,828,936413,879,979
Claims on the International Monetary Fund22,855,39222,854,573
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB25,85331,182
Monetary-policy lending--
Other lending3,718,2823,659,510
- Banks'1)3,718,2823,659,510
- Miscellaneous loans--
Domestic bonds33,137,40233,037,762
Financial fixed assets, etc.130,748192,308
Tangible and intangible fixed assets680,589680,164
Other assets1,094,3411,209,581
497,144,113497,217,629

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.31/0831/07
Banknotes66,256,62766,646,190
Coins6,150,4446,155,203
Monetary-policy deposits146,486,147163,886,012
- Current accounts30,438,14730,569,012
- Certificates of deposit116,048,000133,317,000
Other deposits9,804,2009,899,868
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB25,85331,182
- Other deposits from banks' and mortgage credit institutes'2,106,8972,176,972
- Miscellaneous deposits 2)7,671,4507,691,714
Central government171,662,505153,785,878
Foreign liabilities2,699,4232,775,847
Counterpart of Special Drawing Rights allocated by the IMF (SDR)14,137,49014,137,490
Other liabilities161,809145,673
Capital and reserves79,785,46879,785,468
497,144,113497,217,629

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.