Foreign Exchange and Liquidity and Monthly Balance Sheet, January 2023

Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases  
Year 2023
Published 2 February 2023
Abstract icon ​In January 2023, the foreign-exchange reserve increased by kr. 16.5 billion to kr. 594.6 billion. For settlement in January, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 13.2 billion.

THE FOREIGN-EXCHANGE RESERVE

In January 2023, the foreign-exchange reserve increased by kr. 16.5 billion to kr. 594.6 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 16.5 billion, cf. table 1.

For settlement in January, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 13.2 billion.

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

Kr. billionJanuary 2023
Danmarks Nationalbank's interventions* to purchase foreign exchange, net13.2
Other**3.3
Danmarks Nationalbank's net foreign-exchange purchases16.5
The central government's net foreign borrowing***0.0
Change in the foreign-exchange reserve16.5

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 2022

Danmarks Nationalbank has calculated annual value adjustments of its holdings in connection with the preparation of the annual report for 2022.

As a result of value adjustments, etc. the foreign exchange reserve has decreased by kr. 9.4 billion and amounts to kr. 578.1 billion at end-2022. Similarly the holdings of domestic bonds have decreased by kr. 1.5 billion and amount to kr. 31.8 billion at end-2022.

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. 5.2 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 21.1 billion in January, to an outstanding amount of kr. 268.9 billion. In January, Danmarks Nationalbank's net foreign-exchange purchases increased the net position by kr. 16.5 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 2023
The central government's net financing5.2
Redemption on domestic central-government debt*5.0
Net bond purchases by the government funds and own portfolio and financing of social housing-0.5
Other**-0.1
The central government's gross domestic financing requirement9.6
The central government's gross domestic borrowing***5.6
The central government's liquidity impact4.0
Danmarks Nationalbank's net foreign-exchange purchases16.5
Danmarks Nationalbank's net bond purchases-0.7
Other factors****1.2
Change in net position21.1

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.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 31 JANUARY 2023

Assets 2023 2022
1000 kr.31/0130/12
Stock of gold27,036,41125,569,628
Foreign assets515,326,815513,143,540
Claims on the International Monetary Fund57,451,49956,674,691
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB27,04929,077
Monetary-policy lending- -
Other lending1,438,2831,902,692
- Banks'1)1,438,2831,902,692
- Miscellaneous loans- -
Domestic bonds31,112,95933,337,366
Financial fixed assets, etc.131,056131,056
Tangible and intangible fixed assets607,040588,162
Other assets12,678,0901,477,164
645,809,202632,853,376

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

Liabilities 2023 2022
1000 kr.31/0130/12
Banknotes67,577,41768,872,927
Coins6,240,4406,251,635
Monetary-policy deposits268,944,353247,879,329
- Current accounts268,844,353247,779,329
- Certificates of deposit100,000100,000
Other deposits13,441,90913,504,448
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB27,04929,077
- Other deposits from banks' and mortgage credit institutes'2,466,2612,682,199
- Miscellaneous deposits10,948,59910,793,172
Central government157,751,061161,779,101
Foreign liabilities5,219,3307,959,567
Counterpart of Special Drawing Rights allocated by the IMF (SDR)44,941,28544,343,581
Other liabilities97,369666,750
Capital and reserves81,596,03881,596,038
645,809,202632,853,376

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.