The following table shows the Central Bank of Iceland's Balance Sheet as at the end of August 2004 with comparative figures for the end of July 2004 and end of December 2003.
In August, the Central Bank purchased currency in the domestic interbank market for 1.6 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). Including foreign exchange-rate gains resulting from a 1.3% weakening of the Icelandic króna in August, the Central Bank's foreign reserves increased by 2.7 b.kr. to 70.8 b.kr. at the end of the month (equivalent to 981 m. US dollars).
Central Bank claims on deposit money banks decreased by 6.4 b.kr. in August and amounted to 21.1 b.kr. at the end of the month. Claims on other financial institutions decreased slightly and stood at 9.7 b.kr. at the end of the month.
Central Bank liabilities towards deposit money banks decreased by 11.6 b.kr. during the month and now amount to 23.3 b.kr., while liabilities towards other financial institutions remained virtually unchanged.
Market value of listed securities in the Bank's portfolio was 3.2 b.kr. at the end of August.
Net deposits of central government increased by 7.2 b.kr. in August and stood at 23.8 b.kr. at the end of the month.
Base money decreased by 12.3 b.kr. in August and amounted to 34.5 b.kr. at the end of August.
For further information, contact the Governors of the Central Bank of Iceland or Erla Árnadóttir, Chief Accountant, tel. (+354) 569-9600.
No. 25/2004
September 6, 2004