Foreign Exchange and Liquidity and Monthly Balance Sheet, August 2021

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2021
Published 2 September 2021
Abstract iconIn August 2021, the foreign-exchange reserve increased by kr. 24.8 billion to kr. 483.4 billion.

THE FOREIGN-EXCHANGE RESERVE

In August 2021, the foreign-exchange reserve increased by kr. 24.8 billion to kr. 483.4 billion. The increase reflects an allocation of SDR from the IMF for kr. 29.7 billion, and the central government's net repayment of foreign debt for kr. 5.0 billion, cf. table 1. For more information about the allocation of SDR, please 
see Danmarks Nationalbank's press release from 23 August 2021.

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 2021January 2021 - August 2021
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.049.6
Other**29.729.7
Danmarks Nationalbank's net foreign-exchange purchases*** 29.779.3
The central government's net foreign borrowing**** -5.0-34.9
Change in the foreign-exchange reserve24.844.4

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.

*** The change in net foreign-exchange purchases reflects the allocation of SDR from IMF and not foreign-exchange purchases

**** 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. -34.3 billion. Since the turn of the year, the central government's net financing requirement has been kr. -43.1 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 48.5 billion in August, to an outstanding amount of kr. 149.2 billion. In August, the central government's liquidity impact decreased the net position by kr. 49.2 billion.

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

Kr. billionAugust 2021January 2021 - August 2021
The central government's net financing-34.3-43.1
Redemption on domestic central-government debt*8.770.5
Net bond purchases by the government funds and own portfolio and financing of social housing-0.65.0
Other**-0.1-0.4
The central government's gross domestic financing requirement-26.232.0
The central government's gross domestic borrowing***23.089.9
The central government's liquidity impact-49.2-57.9
Danmarks Nationalbank's net foreign-exchange purchases29.779.3
Danmarks Nationalbank's net bond purchases0.0-0.2
Other factors****-29.0-35.9
Change in net position-48.5-14.8

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 AUGUST 2021

Assets 2021 2021
1000 kr.31/0831/07
Stock of gold24,535,62624,535,626
Foreign assets409,169,420413,500,191
Claims on the International Monetary Fund51,715,75422,068,426
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB31,51331,762
Monetary-policy lending- -
Other lending1,823,7291,535,956
- Banks'1)1,823,7291,535,956
- Miscellaneous loans- -
Domestic bonds32,702,40432,702,404
Financial fixed assets, etc.131,056131,056
Tangible and intangible fixed assets705,680703,195
Other assets3,125,8733,016,600
523,941,055498,225,216

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

Liabilities 2021 2021
1000 kr.31/0831/07
Banknotes71,837,71972,187,584
Coins6,265,4866,258,232
Monetary-policy deposits149,200,879197,707,745
- Current accounts148,850,879194,957,745
- Certificates of deposit350,0002,750,000
Other deposits10,041,9259,988,734
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB31,51331,762
- Other deposits from banks' and mortgage credit institutes'2,095,0832,061,542
- Miscellaneous deposits7,915,3297,895,430
Central government159,976,751115,680,090
Foreign liabilities2,070,5281,533,009
Counterpart of Special Drawing Rights allocated by the IMF (SDR)43,085,46413,415,554
Other liabilities60,38252,347
Capital and reserves81,401,92181,401,921
523,941,055498,225,216

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.