The following table shows the Central Bank of Iceland's Balance Sheet as at the end of September 2004 with comparative figures for the end of August 2004 and end of December 2003.
In September, 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). After adjustment for foreign exchange-rate losses resulting from an 0.6% strengthening of the Icelandic króna in September, the Central Bank's foreign reserves increased by 0.3 b.kr. to 71.1 b.kr. at the end of the month (equivalent to 1,004 m. US dollars).
Central Bank claims on deposit money banks decreased by 11.5 b.kr. in September and amounted to 9.6 b.kr. at the end of the month. Claims on other financial institutions increased to 10.7 b.kr. at the end of the month.
Market value of listed securities in the Bank's portfolio was 3.2 b.kr. at the end of September.
Central Bank liabilities towards deposit money banks decreased by 5.3 b.kr. during the month and now amount to 18 b.kr., while liabilities towards other financial institutions remained virtually unchanged.
Net deposits of central government decreased by 3.9 b.kr. in August and stood at 20 b.kr. at the end of the month.
Base money decreased by 5.5 b.kr. in September and amounted to 29 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. 27/2004
October 6, 2004