Post sponsored by NewzEngine.com

Source: Danmarks Nationalbank

THE FOREIGN-EXCHANGE RESERVE

In September 2020, the foreign-exchange reserve increased by kr. 0.1 billion to kr. 455.7 billion. The increase reflects Danmarks Nationalbank’s net purchase of foreign exchange for kr. 0.1 billion, and the central government’s net repayment of foreign debt for kr. 0.0 billion, cf. table 1.

In September, 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

Danmarks Nationalbank’s interventions* to purchase foreign exchange, net 0.0 -77.7
Other** 0.1 -4.4
Danmarks Nationalbank’s net foreign-exchange purchases 0.1 -82.1
The central government’s net foreign borrowing*** 0.0 96.6
Change in the foreign-exchange reserve 0.1 14.5

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 September, the central government’s net financing requirement amounted to kr. -13.2 billion. Since the turn of the year, the central government’s net financing requirement has been kr. 84.7 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 5.0 billion in September, to an outstanding amount of kr. 141.5 billion. In September, the central government’s liquidity impact decreased the net position by kr. 5.2 billion.

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

The central government’s net financing -13.2 84.7
Redemption on domestic central-government debt* 16.1 58.6
Net bond purchases by the government funds and own portfolio and financing of social housing 0.4 11.7
Other** 0.0 0.6
The central government’s gross domestic financing requirement 3.4 155.6
The central government’s gross domestic borrowing*** 8.6 165.1
The central government’s liquidity impact -5.2 -9.5
Danmarks Nationalbank’s net foreign-exchange purchases 0.1 -82.1
Danmarks Nationalbank’s net bond purchases 0.1 1.1
Other factors**** 0.0 1.3
Change in net position -5.0 -89.1

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 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 June 2012 the current-account interest rate has been 0.00 pct. p.a., since 20 January 2015 the lending rate has been 0.05 pct. p.a. and since 20 March 2020 the rate of interest on certificates of deposit has been -0.60 pct. p.a.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 30 SEPTEMBER 2020

1000 kr. 30/09 31/08
Stock of gold 21,672,570 21,672,570
Foreign assets 413,769,774 413,828,936
Claims on the International Monetary Fund 22,855,392 22,855,392
Claims related to banks’ and mortgage credit institutes’ TARGET accounts in ECB 31,844 25,853
Monetary-policy lending 7,500,000
Other lending 1,795,361 3,718,282
– Banks’1) 1,795,361 3,718,282
– Miscellaneous loans
Domestic bonds 33,236,032 33,137,402
Financial fixed assets, etc. 130,748 130,748
Tangible and intangible fixed assets 685,011 680,589
Other assets 1,132,624 1,094,341
502,809,356 497,144,113

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

1000 kr. 30/09 31/08
Banknotes 66,118,243 66,256,627
Coins 6,150,672 6,150,444
Monetary-policy deposits 148,972,765 146,486,147
– Current accounts 25,864,765 30,438,147
– Certificates of deposit 123,108,000 116,048,000
Other deposits 8,006,369 9,804,200
– Deposits related to banks’ and mortgage credit institutes’ TARGET accounts in ECB 31,844 25,853
– Other deposits from banks’ and mortgage credit institutes’ 2,322,536 2,106,897
– Miscellaneous deposits 5,651,989 7,671,450
Central government 176,858,335 171,662,505
Foreign liabilities 2,589,325 2,699,423
Counterpart of Special Drawing Rights allocated by the IMF (SDR) 14,137,490 14,137,490
Other liabilities 190,689 161,809
Capital and reserves 79,785,468 79,785,468
502,809,356 497,144,113

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.

MIL OSI Global Banks