Foreign Exchange and Liquidity and Monthly Balance Sheet, July 2022

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2022
Published 2 August 2022
Abstract icon ​In July 2022, the foreign-exchange reserve decreased by kr. 0.5 billion to kr. 533.4 billion.

THE FOREIGN-EXCHANGE RESERVE

In July 2022, the foreign-exchange reserve decreased by kr. 0.5 billion to kr. 533.4 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 0.5 billion, and the central government's net repayment of foreign debt for kr. 0.0 billion, cf. table 1.

For settlement in July, 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. billionJuly 2022January 2022 - July 2022
Danmarks Nationalbank's interventions* to purchase foreign exchange, net0.00.0
Other**-0.52.8
Danmarks Nationalbank's net foreign-exchange purchases-0.52.8
The central government's net foreign borrowing***0.0-4.6
Change in the foreign-exchange reserve-0.5-1.7

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. 30.8 billion. Since the turn of the year, the central government's net financing requirement has been kr. -52.5 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 18.0 billion in July, to an outstanding amount of kr. 228.8 billion. In July, the central government's liquidity impact increased the net position by kr. 18.4 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 2022January 2022 - July 2022
The central government's net financing30.8-52.5
Redemption on domestic central-government debt*0.475.4
Net bond purchases by the government funds and own portfolio and financing of social housing1.019.4
Other**-0.5-1.7
The central government's gross domestic financing requirement31.840.5
The central government's gross domestic borrowing***13.315.7
The central government's liquidity impact18.424.8
Danmarks Nationalbank's net foreign-exchange purchases-0.52.8
Danmarks Nationalbank's net bond purchases0.21.2
Other factors****-0.2-2.5
Change in net position18.026.3

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 22 July 2022 the current-account interest rate has been -0,10 pct. p.a., since 22 July 2022 the lending rate has been 0,05 pct. p.a. and since 22 July 2022 the rate of interest on certificates of deposit has been -0,10 pct. p.a.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 29 JULY 2022

Assets 2022 2022
1000 kr.29/0730/06
Stock of gold25,569,62825,569,628
Foreign assets457,772,886458,316,543
Claims on the International Monetary Fund55,468,64855,334,317
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB27,17732,535
Monetary-policy lending- 5,000,000
Other lending1,771,8361,739,407
- Banks'1)1,771,8361,739,407
- Miscellaneous loans- -
Domestic bonds32,543,52732,321,266
Financial fixed assets, etc.131,056131,056
Tangible and intangible fixed assets646,292650,779
Other assets1,657,1871,748,360
575,588,237580,843,891

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

Liabilities 2022 2022
1000 kr.29/0730/06
Banknotes71,275,89171,838,676
Coins6,263,3716,248,077
Monetary-policy deposits228,838,181215,876,926
- Current accounts228,588,181215,576,926
- Certificates of deposit250,000300,000
Other deposits14,071,96413,353,597
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB27,17732,535
- Other deposits from banks' and mortgage credit institutes'3,408,5602,832,090
- Miscellaneous deposits10,636,22710,488,972
Central government122,170,525140,622,049
Foreign liabilities5,445,0655,374,326
Counterpart of Special Drawing Rights allocated by the IMF (SDR)44,343,58144,343,581
Other liabilities1,583,6211,590,621
Capital and reserves81,596,03881,596,038
575,588,237580,843,891

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.