Foreign Exchange and Liquidity and Monthly Balance Sheet, January 2024

THE FOREIGN-EXCHANGE RESERVE

In January 2024, the foreign-exchange reserve increased by kr. 4.4 billion to kr. 630.2 billion. The increase reflects Danmarks Nationalbank's net purchase of foreign exchange for kr. 2.2 billion, and the central government's net borrowing of foreign debt for kr. 2.1 billion, cf. table 1.

For settlement in January, 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

Note: Details may not add because of rounding and previously published figure may have been revised. All transactions as per settlement date.

** 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.

VALUE ADJUSTMENT OF DANMARKS NATIONALBANK'S PORTFOLIOS FOR 2023

Danmarks Nationalbank has calculated annual value adjustments of its holdings in connection with the preparation of the annual report for 2023.

As a result of value adjustments, etc. the foreign exchange reserve has increased by kr. 13.1 billion and amounts to kr. 625.9 billion at end-2023. Similarly the holdings of domestic bonds have increased by kr. 0.9 billion and amount to kr. 33.1 billion at end-2023.

The monthly balance sheet is a liquidity statement, the purpose of which is that the net liquidity changes of the monetary-policy instruments as well as of the size of the foreign exchange reserve can be read directly from the balance as changes during the period. Thus the monthly balance sheet does not include value adjustments or accruals, which are solely included in Danmarks Nationalbank's annual report.

DEVELOPMENT IN LIQUIDITY

In January, the central government's net financing requirement amounted to kr. 17.7 billion, cf. table 2.

The net position of the banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank increased by kr. 16.9 billion in January, to an outstanding amount of kr. 307.4 billion. In January, the central government's liquidity impact increased the net position by kr. 11.9 billion.

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

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, 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 15 September 2023 the discount rate has been 3,60 pct. p.a., since 15 September 2023 the current-account interest rate has been 3,60 pct. p.a., since 15 September 2023 the lending rate has been 3,75 pct. p.a. and since 15 September 2023 the rate of interest on certificates of deposit has been 3,60 pct. p.a.

Enquiries can be directed to press advisor Teis Hald Jensen on tel. +45 3363 6066.

BALANCE SHEET OF DANMARKS NATIONALBANK 31 JANUARY 2024

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

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.