Foreign Exchange and Liquidity and Monthly Balance Sheet, October 2022

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2022
Published 2 November 2022
Abstract icon ​In October 2022, the foreign-exchange reserve increased by kr. 9.4 billion to kr. 563.6 billion. For settlement in October, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 22.3 billion.

THE FOREIGN-EXCHANGE RESERVE

In October 2022, the foreign-exchange reserve increased by kr. 9.4 billion to kr. 563.6 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 20.9 billion, and the central government's net repayment of foreign debt for kr. 11.4 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. 22.3 billion.

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

Kr. billionOctober 2022January 2022 - October 2022
Danmarks Nationalbank's interventions* to purchase foreign exchange, net22.345.3
Other**-1.40.8
Danmarks Nationalbank's net foreign-exchange purchases20.946.1
The central government's net foreign borrowing***-11.4-17.5
Change in the foreign-exchange reserve9.428.5

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 October, the central government's net financing requirement amounted to kr. 23.2 billion. Since the turn of the year, the central government's net financing requirement has been kr. -81.8 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 41.9 billion in October, to an outstanding amount of kr. 259.8 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 2022January 2022 - October 2022
The central government's net financing23.2-81.8
Redemption on domestic central-government debt*1.587.3
Net bond purchases by the government funds and own portfolio and financing of social housing-0.421.5
Other**2.80.2
The central government's gross domestic financing requirement27.127.3
The central government's gross domestic borrowing***8.118.3
The central government's liquidity impact19.09.0
Danmarks Nationalbank's net foreign-exchange purchases20.946.1
Danmarks Nationalbank's net bond purchases0.82.2
Other factors****1.20.0
Change in net position41.957.2

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 28 October 2022 the discount rate has been 1,25 pct. p.a., since 28 October 2022 the current-account interest rate has been 1,25 pct. p.a., since 28 October 2022 the lending rate has been 1,40 pct. p.a. and since 28 October 2022 the rate of interest on certificates of deposit has been 1,25 pct. p.a.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 31 OCTOBER 2022

Assets 2022 2022
1000 kr.31/1030/09
Stock of gold25,569,62825,569,628
Foreign assets491,373,506479,486,991
Claims on the International Monetary Fund56,671,08155,662,832
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB49,57232,033
Monetary-policy lending- -
Other lending1,691,9911,425,092
- Banks'1)1,691,9911,425,092
- Miscellaneous loans- -
Domestic bonds33,535,80632,729,019
Financial fixed assets, etc.131,056131,056
Tangible and intangible fixed assets658,609661,614
Other assets1,032,773992,057
610,714,022596,690,322

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

Liabilities 2022 2022
1000 kr.31/1030/09
Banknotes69,045,17569,216,812
Coins6,254,3336,255,932
Monetary-policy deposits259,769,642217,845,808
- Current accounts259,519,642217,595,808
- Certificates of deposit250,000250,000
Other deposits14,091,77614,611,326
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB49,57232,033
- Other deposits from banks' and mortgage credit institutes'3,441,2864,032,939
- Miscellaneous deposits10,600,91810,546,354
Central government125,001,051155,452,736
Foreign liabilities10,000,5436,549,846
Counterpart of Special Drawing Rights allocated by the IMF (SDR)44,343,58144,343,581
Other liabilities611,883818,243
Capital and reserves81,596,03881,596,038
610,714,022596,690,322

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.