Foreign Exchange and Liquidity and Monthly Balance Sheet, November 2020
Authors Danmarks Nationalbank
Subject Press releases from Danmarks Nationalbank
Type Press Releases
Year 2020
Published 2 December 2020
​In November 2020, the foreign-exchange reserve decreased by kr. 5.0 billion to kr. 456.4 billion.
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THE FOREIGN-EXCHANGE RESERVE

In November 2020, the foreign-exchange reserve decreased by kr. 5.0 billion to kr. 456.4 billion. The decrease reflects the central government's net repayment of foreign debt for kr. 5.0 billion, cf. table 1.

In November, 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

Kr. billion November 2020 January 2020 - November 2020
Danmarks Nationalbank's interventions* to purchase foreign exchange, net 0.0 -77.7
Other** 0.0 -6.2
Danmarks Nationalbank's net foreign-exchange purchases 0.0 -83.9
The central government's net foreign borrowing*** -5.0 99.1
Change in the foreign-exchange reserve -5.0 15.2

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 November, the central government's net financing requirement amounted to kr. -22.2 billion. Since the turn of the year, the central government's net financing requirement has been kr. 92.5 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by kr. 19.5 billion in November, to an outstanding amount of kr. 135.6 billion. In November, the central government's liquidity impact decreased the net position by kr. 19.0 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 November 2020 January 2020 - November 2020
The central government's net financing -22.2 92.5
Redemption on domestic central-government debt* 30.6 97.5
Net bond purchases by the government funds and own portfolio and financing of social housing 1.5 13.9
Other** 0.2 0.7
The central government's gross domestic financing requirement 10.1 204.5
The central government's gross domestic borrowing*** 29.1 216.9
The central government's liquidity impact -19.0 -12.4
Danmarks Nationalbank's net foreign-exchange purchases 0.0 -83.9
Danmarks Nationalbank's net bond purchases 0.0 1.1
Other factors**** -0.4 0.1
Change in net position -19.5 -95.0

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 NOVEMBER 2020

Assets 2020 2020
1000 kr. 30/11 31/10
Stock of gold 21,672,570 21,672,570
Foreign assets 416,182,259 419,437,550
Claims on the International Monetary Fund 22,850,996 22,855,392
Claims related to banks' and mortgage credit institutes' TARGET accounts in ECB 32,878 27,221
Monetary-policy lending 20,000,000 -
Other lending 1,184,875 1,490,715
- Banks'1) 1,184,875 1,490,715
- Miscellaneous loans - -
Domestic bonds 33,233,788 33,203,764
Financial fixed assets, etc. 130,748 130,748
Tangible and intangible fixed assets 679,916 681,760
Other assets 1,085,134 981,462
517,053,164 500,481,182

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

Liabilities 2020 2020
1000 kr. 30/11 31/10
Banknotes 67,118,723 66,608,980
Coins 6,135,241 6,142,771
Monetary-policy deposits 155,552,562 155,007,695
- Current accounts 28,303,562 30,543,695
- Certificates of deposit 127,249,000 124,464,000
Other deposits 7,570,283 7,856,907
- Deposits related to banks' and mortgage credit institutes' TARGET accounts in ECB 32,878 27,221
- Other deposits from banks' and mortgage credit institutes' 1,984,971 2,159,109
- Miscellaneous deposits 5,552,434 5,670,577
Central government 182,300,137 168,286,774
Foreign liabilities 4,305,490 2,528,817
Counterpart of Special Drawing Rights allocated by the IMF (SDR) 14,137,490 14,137,490
Other liabilities 147,770 126,280
Capital and reserves 79,785,468 79,785,468
517,053,164 500,481,182

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.

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Danmarks Nationalbank published this content on 02 December 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 02 December 2020 16:06:00 UTC