The following table shows the Central Bank of Iceland's Balance Sheet as at the end of June 2004 with comparative figures for the end of May 2004 and end of December 2003.
In June, the Central Bank purchased currency in the domestic interbank market for 1.8 b.kr., which is consistent with its strategy of strengthening its external position (see, for example, the November 2003 issue of the Bank's Monetary Bulletin). Augmented by foreign exchange-rate gains during the month, the Central Bank's foreign reserves increased by a total of 2.7 b.kr. and amounted to 68.5 b.kr. at the end of the month (equivalent to 944 m. US dollars). Exchange-rate gains resulted from an 0.8% weakening of the Icelandic króna in June.
Central Bank claims on deposit money banks increased by 1.4 b.kr. in June and amounted to 23.6 b.kr. at the end of the month. Claims on other financial institutions also rose, by 1.7 b.kr., and stood at 7 b.kr. at the end of the month.
Central Bank liabilities towards deposit money banks increased by 8.1 b.kr. in June, largely accounted for by certificates of deposit, but DMB deposits with the Bank also rose, by 2.2 b.kr.
Market value of listed securities in the Bank's portfolio was 3.1 b.kr. at the end of June.
Net deposits of central government decreased by 3 b.kr. in June and stood at 25.9 b.kr. at the end of the month.
Base money increased by 8.3 b.kr. during the month and amounted to 30.3 b.kr. at the end of June.
For further information, contact the Governors of the Central Bank of Iceland or Erla Árnadóttir, Chief Accountant, tel. (+354) 569-9600.
No. 20/2004
July 6, 2004