Danmarks Nationalbank : Foreign Exchange and Liquidity and Monthly Balance Sheet, December 2019

Foreign Exchange and Liquidity and Monthly Balance Sheet, December 2019

Authors	Danmarks Nationalbank
Subject	Press releases from Danmarks Nationalbank
Type	Press Releases
Year	2020
Published	3 January 2020

​In December 2019, the foreign-exchange reserve decreased by kr. 5.3 billion to kr. 435.4 billion.

Page Content

THE FOREIGN-EXCHANGE RESERVE

In December 2019, the foreign-exchange reserve decreased by kr. 5.3 billion to kr. 435.4 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 5.3 billion, cf. table 1.

In December, Danmarks Nationalbank's net sale of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 4.1 billion.

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

Kr. billion	December 2019	January 2019 - December 2019
Danmarks Nationalbank's interventions* to purchase foreign exchange, net	-4.1	-7.6
Other**	-1.2	-15.2
Danmarks Nationalbank's net foreign-exchange purchases	-5.3	-22.9
The central government's net foreign borrowing***	0.0	-0.8
Change in the foreign-exchange reserve	-5.3	-23.6

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, EU-payments, 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 December, the central government's net financing requirement amounted to kr. -1.4 billion. In 2019, the central government's net financing requirement has been kr. -7.7 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 9.5 billion in December, to an outstanding amount of kr. 230.6 billion. In December, transactions by the central government increased the net position by kr. 13.4 billion.

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

Kr. billion	December 2019	January 2019 - December 2019
The central government's net financing	-1.4	-7.7
Redemption on domestic central-government debt*	6.5	92.0
Net bond purchases by the government funds and own portfolio and financing of social housing	-1.9	44.2
Other**	0.0	1.2
The central government's gross domestic financing requirement	3.2	129.6
The central government's gross domestic borrowing***	-10.2	88.3
The central government's liquidity impact	13.4	41.3
Danmarks Nationalbank's net foreign-exchange purchases	-5.3	-22.9
Danmarks Nationalbank's net bond purchases	0.4	-0.2
Other factors****	1.0	1.6
Change in net position	9.5	19.7

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 13 September 2019 the rate of interest on certificates of deposit has been -0,75 pct. p.a.

Enquiries can be directed to press advicer Ole Mikkelsen on tel. [phone].

BALANCE SHEET OF DANMARKS NATIONALBANK 31 DECEMBER 2019

Assets	2019	2019
1000 kr.	31/12	30/11
Stock of gold	17,840,840	17,840,840
Foreign assets	402,427,984	410,622,846
Claims on the International Monetary Fund	18,226,010	18,254,344
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB	37,892	37,825
Monetary-policy lending	-	-
Other lending	2,090,994	1,394,861
- Banks'1)	2,090,994	1,394,861
- Miscellaneous loans	-	-
Domestic bonds	32,346,179	31,930,113
Financial fixed assets, etc.	184,405	184,405
Tangible and intangible fixed assets	686,942	689,664
Other assets	577,813	609,961
474,419,059	481,564,859

1) Including loans financing decentralised banknote holdings.

Liabilities	2019	2019
1000 kr.	31/12	30/11
Banknotes	64,430,481	62,765,305
Coins	6,121,076	6,120,906
Monetary-policy deposits	230,566,308	221,055,588
- Current accounts	31,205,308	31,355,588
- Certificates of deposit	199,361,000	189,700,000
Other deposits	11,779,926	13,783,771
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB	37,892	37,825
- Other deposits from banks' and mortgage credit institutes'	2,366,105	2,691,381
- Miscellaneous deposits	9,375,929	11,054,565
Central government	70,410,935	83,843,133
Foreign liabilities	3,100,663	6,006,107
Counterpart of Special Drawing Rights allocated by the IMF (SDR)	13,880,049	13,880,049
Other liabilities	440,412	420,791
Capital and reserves	73,689,209	73,689,209
474,419,059	481,564,859

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.