Foreign Exchange and Liquidity and Monthly Balance Sheet, January 2022

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2022
Published 2 February 2022
Abstract icon ​In January 2022, the foreign-exchange reserve decreased by kr. 4.4 billion to kr. 530.7 billion.

THE FOREIGN-EXCHANGE RESERVE

In January 2022, the foreign-exchange reserve decreased by kr. 4.4 billion to kr. 530.7 billion. The decrease reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 0.5 billion, and the central government's net repayment of foreign debt for kr. 4.9 billion, cf. table 1.

For settlement in January, 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. billionJanuary 2022
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.0
Other**0.5
Danmarks Nationalbank's net foreign-exchange purchases0.5
The central government's net foreign borrowing***-4.9
Change in the foreign-exchange reserve-4.4

Note: Details may not add because of rounding and previously published figure may have been revised. All transactions as per settlement date.

** 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.

VALUE ADJUSTMENT OF DANMARKS NATIONALBANK'S PORTFOLIOS FOR 2021

Danmarks Nationalbank has calculated annual value adjustments of its holdings in connection with the preparation of the annual report for 2021.

As a result of value adjustments, etc. the foreign exchange reserve has increased by kr. 5.3 billion and amounts to kr. 535.1 billion at end-2021. Similarly the holdings of domestic bonds have decreased by kr. 0.5 billion and amount to kr. 31.4 billion at end-2021.

The monthly balance sheet is a liquidity statement, the purpose of which is that the net liquidity changes of the monetary-policy instruments as well as of the size of the foreign exchange reserve can be read directly from the balance as changes during the period. Thus the monthly balance sheet does not include value adjustments or accruals, which are solely included in Danmarks Nationalbank's annual report.

DEVELOPMENT IN LIQUIDITY

In January, the central government's net financing requirement amounted to kr. -49.0 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 23.4 billion in January, to an outstanding amount of kr. 179.1 billion. In January, the central government's liquidity impact decreased the net position by kr. 25.0 billion.

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

Kr. billionJanuary 2022
The central government's net financing-49.0
Redemption on domestic central-government debt*30.1
Net bond purchases by the government funds and own portfolio and financing of social housing6.0
Other**-0.2
The central government's gross domestic financing requirement-13.1
The central government's gross domestic borrowing***11.9
The central government's liquidity impact-25.0
Danmarks Nationalbank's net foreign-exchange purchases0.5
Danmarks Nationalbank's net bond purchases0.6
Other factors****0.4
Change in net position-23.4

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, inter alia, net bond purchases by the government funds and 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 JANUARY 2022

Assets 2022 2021
1000 kr.31/0131/12
Stock of gold25,569,62824,535,626
Foreign assets453,962,463456,042,442
Claims on the International Monetary Fund53,949,54052,254,465
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB29,53940,300
Monetary-policy lending- -
Other lending1,370,3751,874,228
- Banks'1)1,370,3751,874,228
- Miscellaneous loans- -
Domestic bonds32,002,83131,830,104
Financial fixed assets, etc.131,056131,056
Tangible and intangible fixed assets656,124648,323
Other assets1,212,0913,330,414
568,883,647570,686,958

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

Liabilities 2022 2021
1000 kr.31/0131/12
Banknotes70,092,35871,368,473
Coins6,204,7616,218,036
Monetary-policy deposits179,081,131202,527,063
- Current accounts178,831,131202,277,063
- Certificates of deposit250,000250,000
Other deposits11,545,69511,421,075
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB29,53940,300
- Other deposits from banks' and mortgage credit institutes'2,550,0582,367,871
- Miscellaneous deposits8,966,0989,012,904
Central government171,653,274151,532,734
Foreign liabilities2,773,5693,059,370
Counterpart of Special Drawing Rights allocated by the IMF (SDR)44,343,58143,085,464
Other liabilities1,787,35772,822
Capital and reserves81,401,92181,401,921
568,883,647570,686,958

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.