Meginmál

Highlights from the Central Bank of Iceland balance sheet

NOTE: This article is from 06. November 2003 and is therefore more than 5 years old.

The following data are from the Central Bank of Iceland's Balance Sheet as at the end of October 2003 with comparative figures for the end of December 2002 and changes within the month and from the beginning of 2003.

The Central Bank's foreign reserves increased by 5.4 b.kr. and amounted to 51.7 b.kr. at the end of October (equivalent to 680 m. US dollars at the exchange rate at the end of the month). The Bank now has no foreign short-term liabilities in connection with its foreign reserves; at the beginning of the year these liabilities amounted to just over 16 b.kr.

In October, the Central Bank purchased currency in the domestic interbank market for 4.4 b.kr., which is consistent with the measures to strengthen its external position as described inter alia in the May 2003 issue of the Bank's Monetary Bulletin. The Icelandic króna weakened by 0.3% in October.

Market value of listed securities in the Bank's portfolio was 3.9 b.kr. at the end of October. Of this figure, listed Treasury securities amounted to 0.7 b.kr., decreasing by 0.5 b.kr. during the month when an issue matured.

Central Bank claims on deposit money banks decreased by 11.4 b.kr. in October and amounted to 44.3 b.kr. at the end of the month. Claims on other financial institutions remained virtually unchanged at 3.2 b.kr.

Net claims on central government increased by 11.6 b.kr. in October and the Treasury's net deposit at the end of the month stood at 16.5 b.kr.

Base money increased by 5.8 b.kr. during the month and amounted to 37.4 b.kr. at the end of October.

For further information, contact the Governors of the Central Bank of Iceland and Erla Árnadóttir, Chief Accountant, tel. (+354) 569-9600.

No 25/2003
6 November 2003

Highlights from the Central Bank of Iceland Balance Sheet

In m.kr.

End of period

Changes in 2003

December

October

From

beginning

In

Assets :

2002

2003

of year

October

Foreign reserves

37,194

51,743

14,548

5,376

   Gold

1,727

1,858

131

-1

   Foreign exchange

33,418

47,852

14,434

5,363

   SDR

12

5

-6

0

   Reserve position in the IMF

2,038

2,028

-10

14

Listed securities

5,260

3,891

-1,370

-456

   Treasury

1,816

704

-1,112

-513

   Other

3,445

3,187

-258

57

Claims on DMBs

69,141

44,257

-24,883

-11,398

Claims on other financial institutions

8,227

3,187

-5,040

57

Liabilities:

Foreign short-term liabilities

16,499

205

-16,293

-2

Notes and coin

9,590

9,842

252

128

Sight deposits of DMBs

1,164

1,067

-97

250

Required reserves of DMBs

21,837

26,446

4,609

5,400

Sight deposits of other financial institutions

75

44

-32

14

Required reserves of other financial institutions

1,258

796

-462

-288

Memorandum items:

   External reserve, net

20,696

51,537

30,842

5,378

   Claims on central government, net

-20,846

-16,515

4,331

11,647

   Other claims, total

77,454

47,542

-29,912

-11,366

   Base money

32,590

37,355

4,764

5,778

Definitions

Foreign reserves: Total currency assets of the Central Bank. Foreign exchange: The Central Bank's deposits with foreign banks and its foreign securities portfolio. Reserve position in the IMF: Net reserve in the IMF. Listed securities, Treasury: Assets in the form of Treasury bonds, Treasury bills and Treasury notes. Listed securities, Other: Housing bonds and housing authority bonds. Claims on DMBs: The Bank's net claims on deposit money banks. Claims on other financial institutions: Net claims. Foreign short-term liabilities: Deposits in foreign currency accounts in the Central Bank. Notes and coin: Total notes and coins in circulation outside the Central Bank. Sight deposits of DMBs and other financial institutions: Deposits in current accounts with the Central Bank. Required reserves of DMBs and other financial institutions: Reserves that these institutions are obliged to maintain with the Central Bank in accordance with requirements set by the Bank.

Memorandum items. External reserve, net: Foreign current assets less foreign current liabilities. Claims on central government, net: i.e. liabilities of these entities towards the Central Bank less their deposits with it. Other claims, total: Total claims on other institutions than central government. Base money: Notes and coin in circulation, and deposits and reserves of DMBs with the Central Bank.