Foreign Exchange and Liquidity and Monthly Balance Sheet, December 2021

Foreign Exchange and Liquidity and Monthly Balance Sheet, December 2021

Authors	Danmarks Nationalbank
Subject	Press releases from Danmarks Nationalbank
Type	Press Releases
Year	2022
Published	4 January 2022

​In December, the foreign-exchange reserve increased by kr. 48.3 billion to kr. 529.8 billion. For settlement in December, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign exchange market amounted to kr. 47.0 billion.

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THE FOREIGN-EXCHANGE RESERVE

In December 2021, the foreign-exchange reserve increased by kr. 48.3 billion to kr. 529.8 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 48.2 billion.

For settlement in December, Danmarks Nationalbank's net purchase of foreign exchange due to intervention in the foreign-exchange market amounted to kr. 47.0 billion.

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

Kr. billion	December 2021	January 2021 - December 2021
Danmarks Nationalbank's interventions* to purchase foreign exchange, net	47.0	121.5
Other**	1.2	29.2
Danmarks Nationalbank's net foreign-exchange purchases	48.2	150.7
The central government's net foreign borrowing***	0.0	-59.9
Change in the foreign-exchange reserve	48.3	90.8

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 December, the central government's net financing requirement amounted to kr. 4.0 billion. Since the turn of the year, the central government's net financing requirement has been kr. -110.5 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 64.7 billion in December, to an outstanding amount of kr. 202.5 billion. In December, Danmarks Nationalbank's net foreign-exchange purchases increased the net position by kr. 48.2 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 2021	January 2021 - December 2021
The central government's net financing	4.0	-110.5
Redemption on domestic central-government debt*	3.0	143.1
Net bond purchases by the government funds and own portfolio and financing of social housing	1.3	6.2
Other**	0.0	-0.9
The central government's gross domestic financing requirement	8.4	37.9
The central government's gross domestic borrowing***	-8.5	112.4
The central government's liquidity impact	16.9	-74.5
Danmarks Nationalbank's net foreign-exchange purchases	48.2	150.7
Danmarks Nationalbank's net bond purchases	0.0	-1.1
Other factors****	-0.4	-36.6
Change in net position	64.7	38.5

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 October 2021 the current-account interest rate has been -0.60 pct. p.a., since 1 October 2021 the lending rate has been -0.45 pct. p.a. and since 1 October 2021 the rate of interest on certificates of deposit has been -0.60 pct. p.a.

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

BALANCE SHEET OF DANMARKS NATIONALBANK 31 DECEMBER 2021

Assets	2021	2021
1000 kr.	31/12	30/11
Stock of gold	24,535,626	24,535,626
Foreign assets	456,042,442	409,362,752
Claims on the International Monetary Fund	52,254,465	52,108,944
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB	40,300	28,828
Monetary-policy lending	-	-
Other lending	1,874,228	1,636,999
- Banks'1)	1,874,228	1,636,999
- Miscellaneous loans	-	-
Domestic bonds	31,830,104	31,830,104
Financial fixed assets, etc.	131,056	131,056
Tangible and intangible fixed assets	648,323	697,621
Other assets	3,330,414	3,278,795
570,686,958	523,610,725

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

Liabilities	2021	2021
1000 kr.	31/12	30/11
Banknotes	71,368,473	71,116,858
Coins	6,218,036	6,222,635
Monetary-policy deposits	202,527,063	137,837,605
- Current accounts	202,277,063	137,587,605
- Certificates of deposit	250,000	250,000
Other deposits	11,421,075	10,983,619
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB	40,300	28,828
- Other deposits from banks' and mortgage credit institutes'	2,367,871	2,480,084
- Miscellaneous deposits	9,012,904	8,474,707
Central government	151,532,734	168,389,350
Foreign liabilities	3,059,370	4,512,709
Counterpart of Special Drawing Rights allocated by the IMF (SDR)	43,085,464	43,085,464
Other liabilities	72,822	60,564
Capital and reserves	81,401,921	81,401,921
570,686,958	523,610,725

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.