Foreign Exchange and Liquidity and Monthly Balance Sheet, November 2021

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2021
Published 2 December 2021
Abstract iconIn November 2021, the foreign-exchange reserve decreased by kr. 10.4 billion to kr. 481.5 billion.

THE FOREIGN-EXCHANGE RESERVE

In November 2021, the foreign-exchange reserve decreased by kr. 10.4 billion to kr. 481.5 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 0.4 billion, and the central government's net repayment of foreign debt for kr. 10.0 billion, cf. table 1.

For settlement in November, 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. billionNovember 2021January 2021 - November 2021
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.074.5
Other**-0.428.0
Danmarks Nationalbank's net foreign-exchange purchases-0.4102.5
The central government's net foreign borrowing***-10.0-60.0
Change in the foreign-exchange reserve-10.442.5

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 November, the central government's net financing requirement amounted to kr. -46.3 billion. Since the turn of the year, the central government's net financing requirement has been kr. -114.6 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 15.4 billion in November, to an outstanding amount of kr. 137.8 billion. In November, the central government's liquidity impact decreased the net position by kr. 14.9 billion.

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

Kr. billionNovember 2021January 2021 - November 2021
The central government's net financing-46.3-114.6
Redemption on domestic central-government debt*50.1140.1
Net bond purchases by the government funds and own portfolio and financing of social housing-2.44.8
Other**-0.3-0.9
The central government's gross domestic financing requirement1.129.5
The central government's gross domestic borrowing***15.9120.9
The central government's liquidity impact-14.9-91.4
Danmarks Nationalbank's net foreign-exchange purchases-0.4102.5
Danmarks Nationalbank's net bond purchases0.0-1.1
Other factors****-0.1-36.2
Change in net position-15.4-26.2

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 30 NOVEMBER 2021

Assets 2021 2021
1000 kr.30/1131/10
Stock of gold24,535,62624,535,626
Foreign assets409,362,752419,451,742
Claims on the International Monetary Fund52,108,94451,715,754
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB28,82832,101
Monetary-policy lending- -
Other lending1,636,9991,357,602
- Banks'1)1,636,9991,357,602
- Miscellaneous loans- -
Domestic bonds31,830,10431,830,104
Financial fixed assets, etc.131,056131,056
Tangible and intangible fixed assets697,621700,855
Other assets3,278,7953,004,148
523,610,725532,758,988

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

Liabilities 2021 2021
1000 kr.30/1131/10
Banknotes71,116,85870,827,562
Coins6,222,6356,223,237
Monetary-policy deposits137,837,605153,220,959
- Current accounts137,587,605152,870,959
- Certificates of deposit250,000350,000
Other deposits10,983,61910,630,495
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB28,82832,101
- Other deposits from banks' and mortgage credit institutes'2,480,0842,139,476
- Miscellaneous deposits8,474,7078,458,918
Central government168,389,350163,532,484
Foreign liabilities4,512,7093,774,750
Counterpart of Special Drawing Rights allocated by the IMF (SDR)43,085,46443,085,464
Other liabilities60,56462,116
Capital and reserves81,401,92181,401,921
523,610,725532,758,988

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.