Danmarks Nationalbank : Foreign Exchange and Liquidity and Monthly Balance Sheet, December 2012

3 January 2013

Ref.: 2013-01E

Foreign Exchange and Liquidity and Monthly

Balance Sheet, December 2012

THE FOREIGN-EXCHANGE RESERVE

In December 2012 the foreign-exchange reserve decreased by kr. 8.0 billion to kr. 504.0 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 5.4 billion, and the central government's net repayment of foreign debt for kr. 2.7 billion, cf. table 1. No value adjustment has been made.

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

2.6 billion.

DANMARKS NATIONALBANK'S NET FOREIGN-EXCHANGE

PURCHASES AND THE CHANGE IN THE FOREIGN-EXCHANGE RESERVE - TABLE 1

Kr. billion	December 2012	January-December 2012
Danmarks Nationalbank's interventions* to purchase foreign exchange, net .................................................	-2.6	31.6
Other** .........................................................................	-2.8	2.5
Danmarks Nationalbank's net foreign-exchange purchases .....................................................................	-5.4	34.1
The central government's net foreign borrowing*** ...	-2.7	-22.0
Change in the foreign-exchange reserve ....................	-8.0	12.1

Note: Details may not add because of rounding.

* 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. 24.3 billion. For the whole year 2012, the central government's net financing requirement was kr. 80.4 billion, cf. table

2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 31.1 billion in December, to an outstanding amount of kr. 220.3 billion. In December, transactions

Danmarks Nationalbank • Havnegade 5 • DK-1093 Copenhagen K • www.nationalbanken.dk

Tlf: [phone] • Fax: [phone] • [e-mail]

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by the central government increased the net position by kr. 40.9 billion.

IMPACT OF VARIOUS FACTORS ON THE NET POSITION OF THE BANKS

AND MORTGAGE-CREDIT INSTITUTES VIS-À-VIS DANMARKS NATIONALBANK - TABLE 2

Kr. billion	December 2012	January-December 2012
The central government's net financing .....................	24.3	80.4
Redemption on domestic central-government debt * ...	0.0	73.9
Other** .........................................................................	1.3	-7.6
The central government's gross domestic financing requirement .................................................................	25.6	146.7
The central government's gross domestic borrowing*** ...............................................................	-15.3	105.4
The central government's liquidity impact ..................	40.9	41.3
Danmarks Nationalbank's net foreign-exchange purchases ......................................................................	-5.4	34.1
Danmarks Nationalbank's net bond purchases ...........	-0.3	0.5
Other factors**** ........................................................	-4.2	-4.8
Change in net position .................................................	31.1	71.1

Note: Details may not add because of rounding.

* Including krone-denominated payments by the central government in currency swaps.

** Comprises, inter alia, net bond purchases by the government funds.

*** 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 0.0 per cent, the lending rate has been 0.20 per cent and the rate of interest on certificates of deposit has been -0.20 per cent. Since 1 June 2012 the current-account interest rate has been 0.0 per cent.

Enquiries can be directed to Karsten Biltoft on tel.: [phone].

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BALANCE SHEET OF DANMARKS NATIONALBANK 31 DECEMBER 2012

Assets 2012 2012 2011

1000 kr. 31/12 30/11 31/12
Stock of gold ................................................................. 19,355,991 19,355,991 16,937,594
Foreign assets ................................................................ 465,685,165 471,953,588 448,036,811
Claims on the International Monetary Fund ................. 21,661,590 21,554,242 20,130,777
Claims related to banks' and mortgage credit
institutes' TARGET accounts in ECB ............................... 13,040,423 378,136 8,687,188
Monetary-policy lending ............................................... 66,400,954 53,552,681 24,010,000
Other lending ................................................................ 3,346,959 3,971,000 4,091,151

Banks'1) ................................................................... 3,307,748 3,932,784 4,054,490

Misc. loans .............................................................. 39,211 38,216 36,661

Domestic bonds ............................................................. 34,180,380 34,447,141 33,498,456
Shares etc....................................................................... 1,143,066 1,143,066 898,708
Tangible and intangible fixed assets ............................. 668,086 656,953 650,479

Other assets ................................................................... 1,160,617 1,366,672 3,154,011
1) Including loans financing decentralised banknote holdings.

626,643,231 608,379,470 560,095,175

Liabilities 2012 2012 2011

1000 kr. 31/12 30/11 31/12
Banknotes ...................................................................... 60,045,497 58,086,643 56,686,881
Coins .............................................................................. 5,759,343 5,738,998 5,719,927
Monetary-policy deposits .............................................. 286,671,334 242,768,119 173,158,600

Net current accounts............................................... 102,570,334 99,389,119 23,204,600

Certificates of deposit............................................. 184,101,000 143,379,000 149,954,000

Other deposits ............................................................... 25,352,377 11,523,034 15,339,404

Deposits related to banks' and mortgage credit .... 13,040,423 378,136 8,687,188 institutes' TARGET accounts in ECB

Other deposits from banks' and ............................. 7,754 7,119 12,383 mortgage credit institutes'

Misc. deposits.......................................................... 12,304,200 11,137,779 6,639,833

Central government ...................................................... 161,991,034 205,520,595 223,510,308
Foreign liabilities ........................................................... 2,685,203 805,026 3,387,314
Counterpart of Special Drawing Rights
allocated by the IMF (SDR) ............................................ 13,511,271 13,511,271 13,252,758
Other liabilities .............................................................. 2,264,484 2,063,096 3,071,392

Capital and reserves ...................................................... 68,362,688 68,362,688 65,968,591

626,643,231 608,379,470 560,095,175