Since mid-1995 the Central Bank has published monthly highlights from its Balance Sheet for the end of the preceding month. Instead of highlights, the Central Bank will henceforth publish its full Balance Sheet after the end of each month. As before, this will be published in a press release posted on the Bank's website, but other regular distribution and publication of the Balance Sheet will be discontinued at the same time. As a rule data will be presented from the end of the last month, the end of the month preceding that and the beginning of the year, along with data on changes in individual items. A different arrangement will be followed when the Balance Sheet is published for the end of January.
Central Bank Balance Sheet at end-January 2004
The following table shows the Central Bank of Iceland's Balance Sheet as at the end of January 2004 with comparative figures for the end of December 2003 and end of December 2002.
The Central Bank's foreign reserves decreased in January by 1.7 b.kr. and amounted to 56.4 b.kr. at the end of the month (equivalent to 812 m. US dollars at the exchange rate at the end of the month).
In January, the Central Bank purchased currency in the domestic interbank market for 7 b.kr., which is consistent with the measures to strengthen its external position as described inter alia in the November 2003 issue of the Bank's Monetary Bulletin. Of this total, 5.5 b.kr. were purchased in a single trade with one of the foreign exchange market makers. Under a currency swap agreement made at the same time the Central Bank sold the market maker the equivalent of 6.9 b.kr. in US dollars, which the Bank will repurchase in April this year.
The Icelandic króna strengthened by 3.3% in January.
Market value of listed securities in the Bank's portfolio was 3.9 b.kr. at the end of January. Of this figure, listed Treasury securities amounted to 0.7 b.kr.
Central Bank claims on deposit money banks increased by almost 18 b.kr. in January and amounted to 42 b.kr. at the end of the month. Claims on other financial institutions also rose slightly and stood at 4.8 b.kr. at the end of the month.
Net claims on central government decreased by 7.8 b.kr. in January and the Treasury's net deposit at the end of the month stood at 30 b.kr.
Base money increased by 10.7 b.kr. during the month and amounted to 32.4 b.kr. at the end of January.
For further information, contact the Governors of the Central Bank of Iceland and Erla Árnadóttir, Chief Accountant, tel. (+354) 569-9600.
No. 4/2004
February 5, 2004