Foreign Exchange and Liquidity and Monthly Balance Sheet, May 2021

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2021
Published 2 June 2021
Abstract icon ​In May 2021, the foreign-exchange reserve increased by kr. 17.2 billion to kr. 455.9 billion.

THE FOREIGN-EXCHANGE RESERVE

In May 2021, the foreign-exchange reserve increased by kr. 17.2 billion to kr. 455.9 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 22.2 billion, and the central government's net repayment of foreign debt for kr. 5.0 billion, cf. table 1.

In May, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 22.2 billion.

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

Kr. billionMay2021January 2021 - May 2021
Danmarks Nationalbank's interventions* to purchase foreign exchange, net22.241.8
Other**0.00.1
Danmarks Nationalbank's net foreign-exchange purchases22.241.9
The central government's net foreign borrowing***-5.0-25.0
Change in the foreign-exchange reserve17.216.9

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 May, the central government's net financing requirement amounted to kr. 3.4 billion. Since the turn of the year, the central government's net financing requirement has been kr. -64.1 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 10.8 billion in May, to an outstanding amount of kr. 145.1 billion. In May, Danmarks Nationalbank's net foreign-exchange purchases increased the net position by kr. 22.2 billion.

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

Kr. billionMay2021January 2021 - May 2021
The central government's net financing3.4-64.1
Redemption on domestic central-government debt*4.947.7
Net bond purchases by the government funds and own portfolio and financing of social housing-0.25.1
Other**0.10.1
The central government's gross domestic financing requirement8.3-11.2
The central government's gross domestic borrowing***18.845.3
The central government's liquidity impact-10.5-56.5
Danmarks Nationalbank's net foreign-exchange purchases22.241.9
Danmarks Nationalbank's net bond purchases0.00.1
Other factors****-0.9-4.4
Change in net position10.8-18.9

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 MAY 2021

Assets 2021 2021
1000 kr.31/0530/04
Stock of gold24,535,62624,535,626
Foreign assets411,764,569394,665,902
Claims on the International Monetary Fund22,020,15522,025,035
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB26,42434,522
Monetary-policy lending5,000,0002,040,000
Other lending1,680,4041,721,508
- Banks'1)1,680,4041,721,508
- Miscellaneous loans- -
Domestic bonds33,028,04133,028,041
Financial fixed assets, etc.131,056131,056
Tangible and intangible fixed assets709,435714,316
Other assets2,968,2343,448,585
501,863,944482,344,591

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

Liabilities 2021 2021
1000 kr.31/0530/04
Banknotes71,703,15471,017,142
Coins6,235,5466,233,938
Monetary-policy deposits150,057,216136,315,519
- Current accounts149,707,216135,965,519
- Certificates of deposit350,000350,000
Other deposits8,055,6488,373,312
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB26,42434,522
- Other deposits from banks' and mortgage credit institutes'1,596,9091,683,835
- Miscellaneous deposits6,432,3156,654,955
Central government168,461,587162,942,415
Foreign liabilities2,439,7842,555,385
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,415,55413,415,554
Other liabilities93,53489,405
Capital and reserves81,401,92181,401,921
501,863,944482,344,591

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.