Foreign Exchange and Liquidity and Monthly Balance Sheet, July 2021

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2021
Published 3 August 2021
Abstract icon ​In July 2021, the foreign-exchange reserve increased by kr. 0.2 billion to 458,6 billion. In July, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 5.2 billion.

THE FOREIGN-EXCHANGE RESERVE

In July 2021, the foreign-exchange reserve increased by kr. 0.2 billion to kr. 458.6 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 5.2 billion, and the central government's net repayment of foreign debt for kr. 5.0 billion, cf. table 1.

In July, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 5.2 billion.

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

Kr. billionJuly 2021January 2021 - July 2021
Danmarks Nationalbank's interventions* to purchase foreign exchange, net5.249.6
Other**0.00.0
Danmarks Nationalbank's net foreign-exchange purchases5.249.5
The central government's net foreign borrowing***-5.0-30.0
Change in the foreign-exchange reserve0.219.6

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. 36.3 billion. Since the turn of the year, the central government's net financing requirement has been kr. -8.8 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 23.8 billion in July, to an outstanding amount of kr. 197.7 billion. In July, the central government's liquidity impact increased the net position by kr. 19.5 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 2021January 2021 - July 2021
The central government's net financing36.3-8.8
Redemption on domestic central-government debt*6.761.8
Net bond purchases by the government funds and own portfolio and financing of social housing0.45.6
Other**-0.1-0.3
The central government's gross domestic financing requirement43.458.2
The central government's gross domestic borrowing***23.966.9
The central government's liquidity impact19.5-8.7
Danmarks Nationalbank's net foreign-exchange purchases5.249.5
Danmarks Nationalbank's net bond purchases-0.3-0.2
Other factors****-0.5-6.9
Change in net position23.833.7

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 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 JULY 2021

Assets 2021 2021
1000 kr.31/0730/06
Stock of gold24,535,62624,535,626
Foreign assets413,500,191414,072,498
Claims on the International Monetary Fund22,068,42622,068,426
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB31,76243,987
Monetary-policy lending- -
Other lending1,535,9561,721,802
- Banks'1)1,535,9561,721,802
- Miscellaneous loans- -
Domestic bonds32,702,40433,028,041
Financial fixed assets, etc.131,056131,056
Tangible and intangible fixed assets703,195705,049
Other assets3,016,6003,030,654
498,225,216499,337,139

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

Liabilities 2021 2021
1000 kr.31/0730/06
Banknotes72,187,58472,189,642
Coins6,258,2326,243,856
Monetary-policy deposits197,707,745173,886,479
- Current accounts194,957,745173,536,479
- Certificates of deposit 2,750,000350,000
Other deposits9,988,7349,716,389
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB31,76243,987
- Other deposits from banks' and mortgage credit institutes'2,061,5421,881,348
- Miscellaneous deposits7,895,4307,791,054
Central government115,680,090140,157,843
Foreign liabilities1,533,0092,269,636
Counterpart of Special Drawing Rights allocated by the IMF (SDR)13,415,55413,415,554
Other liabilities52,34755,819
Capital and reserves81,401,92181,401,921
498,225,216499,337,139

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.