Foreign Exchange and Liquidity and Monthly Balance Sheet, June 2021

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2021
Published 2 July 2021
Abstract icon ​In June 2021, the foreign-exchange reserve increased by kr. 2.5 billion to 458.4 billion. In June, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 2.6 billion.

THE FOREIGN-EXCHANGE RESERVE

In June 2021, the foreign-exchange reserve increased by kr. 2.5 billion to kr. 458.4 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 2.5 billion, and the central government's net borrowing of foreign debt for kr. 0.0 billion, cf. table 1.

In June, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 2.6 billion.

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

Kr. billionJune 2021January 2021 - June 2021
Danmarks Nationalbank's interventions* to purchase foreign exchange, net2.644.4
Other**-0.10.0
Danmarks Nationalbank's net foreign-exchange purchases2.544.4
The central government's net foreign borrowing***0.0-25.0
Change in the foreign-exchange reserve2.519.4

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 June, the central government's net financing requirement amounted to kr. 18.9 billion. Since the turn of the year, the central government's net financing requirement has been kr. -45.1 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 28.8 billion in June, to an outstanding amount of kr. 173.9 billion. In June, the central government's liquidity impact increased the net position by kr. 28.3 billion.

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

Kr. billionJune 2021January 2021 - June 2021
The central government's net financing18.9-45.1
Redemption on domestic central-government debt*7.355.1
Net bond purchases by the government funds and own portfolio and financing of social housing0.15.2
Other**-0.3-0.2
The central government's gross domestic financing requirement26.114.9
The central government's gross domestic borrowing***-2.343.0
The central government's liquidity impact28.3-28.2
Danmarks Nationalbank's net foreign-exchange purchases2.544.4
Danmarks Nationalbank's net bond purchases0.00.1
Other factors****-2.0-6.4
Change in net position28.89.9

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 30 JUNE 2021

Assets 2021 2021
1000 kr.30/0631/05
Stock of gold24,535,62624,535,626
Foreign assets414,072,498411,764,569
Claims on the International Monetary Fund22,068,42622,020,155
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB43,98726,424
Monetary-policy lending- 5,000,000
Other lending1,721,8021,680,404
- Banks'1)1,721,8021,680,404
- Miscellaneous loans- -
Domestic bonds33,028,04133,028,041
Financial fixed assets, etc.131,056131,056
Tangible and intangible fixed assets705,049709,435
Other assets3,030,6542,968,234
499,337,139501,863,944

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

Liabilities 2021 2021
1000 kr.30/0631/05
Banknotes72,189,64271,703,154
Coins6,243,8566,235,546
Monetary-policy deposits173,886,479150,057,216
- Current accounts173,536,479149,707,216
- Certificates of deposit350,000350,000
Other deposits9,716,3898,055,648
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB43,98726,424
- Other deposits from banks' and mortgage credit institutes'1,881,3481,596,909
- Miscellaneous deposits7,791,0546,432,315
Central government140,157,843168,461,587
Foreign liabilities2,269,6362,439,784
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,415,55413,415,554
Other liabilities55,81993,534
Capital and reserves81,401,92181,401,921
499,337,139501,863,944

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.