Foreign Exchange and Liquidity and Monthly Balance Sheet, October 2021

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2021
Published 2 November 2021
Abstract icon ​In October 2021, the foreign-exchange reserve decreased by kr. 9.8 billion to kr. 491.9 billion. For settlement in October, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exhcange market amounted to kr. 1.5 billion.

THE FOREIGN-EXCHANGE RESERVE

In October 2021, the foreign-exchange reserve decreased by kr. 9.8 billion to kr. 491.9 billion. The decrease reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 0.2 billion, and the central government's net repayment of foreign debt for kr. 10.0 billion, cf. table 1.

For settlement in October, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 1.5 billion.

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

Kr. billionOctober 2021January 2021 - October 2021
Danmarks Nationalbank's interventions* to purchase foreign exchange, net1.574.5
Other**-1.328.5
Danmarks Nationalbank's net foreign-exchange purchases0.2102.9
The central government's net foreign borrowing***-10.0-50.0
Change in the foreign-exchange reserve-9.852.9

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 October, the central government's net financing requirement amounted to kr. -7.7 billion. Since the turn of the year, the central government's net financing requirement has been kr. -68.3 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 14.1 billion in October, to an outstanding amount of kr. 153.2 billion. In October, the central government's liquidity impact decreased the net position by kr. 13.2 billion.

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

Kr. billionOctober 2021January 2021 - October 2021
The central government's net financing-7.7-68.3
Redemption on domestic central-government debt*9.890.0
Net bond purchases by the government funds and own portfolio and financing of social housing1.67.2
Other**0.0-0.5
The central government's gross domestic financing requirement3.728.4
The central government's gross domestic borrowing***16.9105.0
The central government's liquidity impact-13.2-76.6
Danmarks Nationalbank's net foreign-exchange purchases0.2102.9
Danmarks Nationalbank's net bond purchases-0.9-1.1
Other factors****-0.2-36.1
Change in net position-14.1-10.8

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 1 October 2021 the current-account interest rate has been -0,60 pct. p.a., since 1 October 2021 the lending rate has been -0,45 pct. p.a. and since 1 October 2021 the rate of interest on certificates of deposit has been -0,60 pct. p.a.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 31 OCTOBER 2021

Assets 2021 2021
1000 kr.31/1030/09
Stock of gold24,535,62624,535,626
Foreign assets419,451,742427,692,508
Claims on the International Monetary Fund51,715,75451,715,754
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB32,10137,662
Monetary-policy lending- -
Other lending1,357,6021,931,928
- Banks'1)1,357,6021,931,928
- Miscellaneous loans- -
Domestic bonds31,830,10432,702,404
Financial fixed assets, etc.131,056131,056
Tangible and intangible fixed assets700,855702,819
Other assets3,004,1483,213,487
532,758,988542,663,244

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

Liabilities 2021 2021
1000 kr.31/1030/09
Banknotes70,827,56271,457,631
Coins6,223,2376,242,850
Monetary-policy deposits153,220,959167,299,962
- Current accounts152,870,959166,949,962
- Certificates of deposit350,000350,000
Other deposits10,630,49510,601,813
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB32,10137,662
- Other deposits from banks' and mortgage credit institutes'2,139,4762,080,435
- Miscellaneous deposits8,458,9188,483,716
Central government163,532,484160,299,766
Foreign liabilities3,774,7502,212,525
Counterpart of Special Drawing Rights allocated by the IMF (SDR)43,085,46443,085,464
Other liabilities62,11661,312
Capital and reserves81,401,92181,401,921
532,758,988542,663,244

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.