The following data are from the Central Bank of Iceland's Balance Sheet as at the end of December 2003 with comparative figures for the end of December 2002 and changes within the month and from the beginning of 2003.
Since the accounts and audit for the year have not been completed, the figures for the end of December 2003 are provisional and may be subject to change.
The Central Bank's foreign reserves increased by 0.3 b.kr. and amounted to 58.1 b.kr. at the end of December (equivalent to 819 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 December, the Central Bank purchased currency in the domestic interbank market for 3.7 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 Central Bank has purchased currency in the domestic interbank market for 43.2 b.kr. over the year. The Icelandic króna strengthened by 1.4% in December and by 1.2% over the year as a whole.
Market value of listed securities in the Bank's portfolio was 3.9 b.kr. at the end of December. Of this figure, listed Treasury securities amounted to 0.7 b.kr.
Central Bank claims on deposit money banks decreased by 17.6 b.kr. in December and amounted to 24 b.kr. at the end of the month. Claims on other financial institutions rose slightly and stood at 4 b.kr. at the end of the month.
Deposits of DMBs decreased by 16.7 b.kr. during the month. In December, the minimum reserve requirement was lowered, sight deposits were converted to deposits with reserve provisions, and special reserve accounts were closed.
Net claims on central government increased by 3.1 b.kr. in December and the Treasury's net deposit at the end of the month stood at 22.1 b.kr.
Base money decreased by 11.6 b.kr. during the month and amounted to 21.7 b.kr. at the end of December.
For further information, contact the Governors of the Central Bank of Iceland and Erla Árnadóttir, Chief Accountant, tel. (+354) 569-9600.
No. 2/2004
January 9, 2004