Danmarks Nationalbank : Foreign Exchange and Liquidity and Monthly Balance Sheet, December 2013

3 January 2014

Ref.: 2014-01E

Foreign Exchange and Liquidity and Monthly

Balance Sheet, December 2013

THE FOREIGN-EXCHANGE RESERVE

In December 2013 the foreign-exchange reserve decreased by kr. 3.5 billion to kr. 485.9 billion. The decrease reflects Danmarks Nationalbank's net sale of foreign exchange for kr. 2.5 billion, and the central government's net repayment of foreign debt for kr. 0.9 billion, cf. table 1. No value adjustment has been made.

In December, 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	December 2013	January-December 2013
Danmarks Nationalbank's interventions* to purchase foreign exchange, net .................................................	0.0	-11.9
Other** .........................................................................	-2.5	9.9
Danmarks Nationalbank's net foreign-exchange purchases .....................................................................	-2.5	-2.0
The central government's net foreign borrowing*** ...	-0.9	-13.8
Change in the foreign-exchange reserve ....................	-3.5	-15.8

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, 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. 18.9 billion. Since the turn of the year, the central government's net financing requirement has been kr. 0.0 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 19.3 billion in December, to an outstanding amount of kr. 204.2 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. 25.5 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 2013	January-December 2013
The central government's net financing .....................	18.9	0.0
Redemption on domestic central-government debt * ...	0.0	70.4
Other** .........................................................................	0.6	-16.8
The central government's gross domestic financing requirement .................................................................	19.5	53.6
The central government's gross domestic borrowing*** ...............................................................	-6.0	67.7
The central government's liquidity impact ..................	25.5	-14.1
Danmarks Nationalbank's net foreign-exchange purchases ......................................................................	-2.5	-2.0
Danmarks Nationalbank's net bond purchases ...........	-0.1	0.4
Other factors**** ........................................................	-3.6	-0.3
Change in net position .................................................	19.3	-16.1

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 and 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 0.0 per cent, since 1 June

2012 the current-account interest rate has been 0.0 per cent, since 3

May 2013 the lending rate has been 0.2 per cent and since 25 January

2013 the rate of interest on certificates of deposit has been -0.1 per cent.

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

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BALANCE SHEET OF DANMARKS NATIONALBANK 31 DECEMBER 2013

Assets 2013 2013 2012

1000 kr. 31/12 30/11 31/12
Stock of gold ................................................................. 20,148,284 20,148,284 19,355,991
Foreign assets ................................................................ 447,946,812 449,308,378 465,685,165
Claims on the International Monetary Fund ................. 20,885,739 20,743,795 21,661,590
Claims related to banks' and mortgage credit
institutes' TARGET accounts in ECB ............................... 3,904,588 584,202 13,040,423
Monetary-policy lending ............................................... 23,145,472 15,546,261 66,400,954
Other lending ................................................................ 2,474,671 2,771,766 3,346,959

Banks'1) ................................................................... 2,428,940 2,726,721 3,307,748

Misc. loans .............................................................. 45,731 45,045 39,211

Domestic bonds ............................................................. 34,472,636 34,545,209 34,180,380
Shares etc....................................................................... 1,044,352 1,044,352 1,143,066
Tangible and intangible fixed assets ............................. 738,836 731,185 668,086

Other assets ................................................................... 1,166,585 1,402,665 1,160,617
1) Including loans financing decentralised banknote holdings.

555,927,975 546,826,097 626,643,231

Liabilities 2013 2013 2012

1000 kr. 31/12 30/11 31/12
Banknotes ...................................................................... 60,681,434 58,930,666 60,045,497
Coins .............................................................................. 5,809,589 5,806,399 5,759,343
Monetary-policy deposits .............................................. 227,357,723 200,457,375 286,671,334

Net current accounts............................................... 59,325,723 52,650,375 102,570,334

Certificates of deposit............................................. 168,032,000 147,807,000 184,101,000

Other deposits ............................................................... 10,900,072 6,328,673 25,352,377

Deposits related to banks' and mortgage credit .... 3,904,588 584,202 13,040,423 institutes' TARGET accounts in ECB

Other deposits from banks' and ............................. 6,378 811 7,754 mortgage credit institutes'

Misc. deposits.......................................................... 6,989,106 5,743,660 12,304,200

Central government ...................................................... 161,952,562 188,294,733 161,991,034
Foreign liabilities ........................................................... 3,125,153 888,180 2,685,203
Counterpart of Special Drawing Rights
allocated by the IMF (SDR) ............................................ 13,323,359 13,323,359 13,511,271
Other liabilities .............................................................. 2,075,619 2,094,248 2,264,484

Capital and reserves ...................................................... 70,702,464 70,702,464 68,362,688

555,927,975 546,826,097 626,643,231