The following table shows the Central Bank of Iceland's Balance Sheet as at the end of July 2004 with comparative figures for the end of June 2004 and end of December 2003.
In July, the Central Bank purchased currency in the domestic interbank market for 1.4 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). Due to the strengthening of the Icelandic króna in July by 2.1%, the Central Bank's foreign reserves decreased by 0.4 b.kr. and amounted to 68.1 b.kr. at the end of the month (equivalent to 954 m. US dollars).
Central Bank claims on deposit money banks increased by 3.8 b.kr. in July and amounted to 27.4 b.kr. at the end of the month. Claims on other financial institutions also rose, by 2.8 b.kr., and stood at 9.8 b.kr. at the end of the month.
Central Bank liabilities towards deposit money banks increased by 15.6 b.kr. in July, but liabilities towards other financial institutions were broadly unchanged.
Market value of listed securities in the Bank's portfolio was 3 b.kr. at the end of July.
Net deposits of central government decreased by 9.3 b.kr. in July and stood at 16.6 b.kr. at the end of the month.
Base money increased by 16.5 b.kr. during the month and amounted to 46.8 b.kr. at the end of July.
For further information, contact the Governors of the Central Bank of Iceland or Erla Árnadóttir, Chief Accountant, tel. (+354) 569-9600.
No. 22/2004
August 6, 2004