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Foreign Exchange and Liquidity and Monthly Balance Sheet, March 2021

In March 2021, the foreign-exchange reserve increased by kr. 17.1 billion to kr. 446.5 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 17.1 billion. In March, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 17.0 billion.


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THE FOREIGN-EXCHANGE RESERVE

In March 2021, the foreign-exchange reserve increased by kr. 17.1 billion to kr. 446.5 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 17.1 billion, cf. table 1.

In March, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 17.0 billion.

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

Kr. billionMarch 2021January 2021 - March 2021
Danmarks Nationalbank's interventions* to purchase foreign exchange, net17.017.4
Other**0.10.1
Danmarks Nationalbank's net foreign-exchange purchases17.117.5
The central government's net foreign borrowing***0.0-10.0
Change in the foreign-exchange reserve17.17.5

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 March, the central government's net financing requirement amounted to kr. -43.2 billion. Since the turn of the year, the central government's net financing requirement has been kr. -96.3 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-Ă -vis Danmarks Nationalbank increased by kr. 5.1 billion in March, to an outstanding amount of kr. 111.8 billion. In March, Danmarks Nationalbank's net foreign-exchange purchases increased the net position by kr. 17.1 billion.

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

Kr. billionMarch 2021January 2021 - March 2021
The central government's net financing-43.2-96.3
Redemption on domestic central-government debt*10.634.9
Net bond purchases by the government funds and own portfolio and financing of social housing-0.36.0
Other**-0.3-0.4
The central government's gross domestic financing requirement-33.2-55.8
The central government's gross domestic borrowing***-22.211.3
The central government's liquidity impact-11.0-67.0
Danmarks Nationalbank's net foreign-exchange purchases17.117.5
Danmarks Nationalbank's net bond purchases0.00.1
Other factors****-1.1-2.8
Change in net position5.1-52.2

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 19 March 2021 the current-account interest rate has been -0,50 pct. p.a., since 19 March 2021 the lending rate has been -0,35 pct. p.a. and since 19 March 2021 the rate of interest on certificates of deposit has been -0,50 pct. p.a.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 31 MARCH 2021

Assets 2021 2021
1000 kr.31/0328/02
Stock of gold24,535,62624,535,626
Foreign assets402,096,074384,532,011
Claims on the International Monetary Fund22,025,03522,241,616
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB28,21129,793
Monetary-policy lending16,000,00022,500,000
Other lending1,919,5602,658,616
- Banks'1)1,919,5602,658,616
- Miscellaneous loans- -
Domestic bonds32,984,20432,984,204
Financial fixed assets, etc.130,748130,748
Tangible and intangible fixed assets713,091716,421
Other assets2,990,3482,936,698
503,422,897493,265,733

1) Other lending to banks include loans for cash deposits.

Liabilities 2021 2021
1000 kr.31/0328/02
Banknotes70,541,05369,629,924
Coins6,185,1946,150,454
Monetary-policy deposits127,771,015129,198,502
- Current accounts125,435,01526,813,502
- Certificates of deposit2,336,000102,385,000
Other deposits7,867,9898,463,506
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB28,21129,793
- Other deposits from banks' and mortgage credit institutes'2,034,4841,683,112
- Miscellaneous deposits5,805,2946,750,601
Central government194,002,692182,966,309
Foreign liabilities2,128,8041,911,235
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,415,55413,415,554
Other liabilities108,6751,744,781
Capital and reserves81,401,92179,785,468
503,422,897493,265,733

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.