Central Banking magazine recognised Danmarks Nationalbank as the most innovative and evolving foreign exchange reserve manager among the world's central banks over the past year. The first time Danmarks Nationalbank picked up the award was in 2016.
The award have been given since 2014 and so far no other central bank has won the award for foreign reserve management on two occasions.
“I am very proud that Danmarks Nationalbank has won the Reserve Manager of the Year award. Our foreign exchange reserve plays a key role in implementing monetary policy in Denmark and hence it is critical that we are always prudent and live up to the highest standards,” said Governor Signe Krogstrup to Central Banking.
“I see this honour as recognition of what our reserve management team has achieved and how hard they have worked to make our reserve management even better.”
Foreign exchange reserve of over kr. 600 billion
The foreign exchange reserve of over kr. 600 billion is the primary tool underpinning the Danish fixed exchange rate policy and is used to buy and sell kroner so that the kroner exchange rate follows the euro and stays close to the central rate of kr 7.46038 per euro.
The foreign exchange reserve, along with pension fund assets and bank liquidity reserves, are the largest portfolios in Denmark, and the award recognises that Danmarks Nationalbank has adopted some of the same principles that commercial banks use to manage their balance sheets.