The following table shows the Central Bank of Iceland's Balance Sheet as at the end of October 2004 with comparative figures for the end of September 2004 and end of December 2003.
In October, the Central Bank purchased currency in the domestic interbank market for 1.4 b.kr., which is consistent with its stated strategy of strengthening its external position. The Central Bank's foreign reserves decreased by 5 b.kr. to 66.1 b.kr. at the end of the month (equivalent to 959 m. US dollars). This reduction was the result of Treasury loan movements during the month along with foreign exchange-rate losses resulting from an 0.12% strengthening of the Icelandic króna in October.
Central Bank claims on deposit money banks increased by 11 b.kr. in October and amounted to 20.6 b.kr. at the end of the month. Claims on other financial institutions increased to 11.2 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 October.
Central Bank liabilities towards deposit money banks increased by 9.6 b.kr. in October and amounted to 27.6 b.kr. at the end of the month, while liabilities towards other financial institutions remained virtually unchanged.
Net deposits of central government decreased by 2.9 b.kr. during the month and stood at 17 b.kr. at the end of October.
Base money increased by 9.7 b.kr. in October and amounted to 38.6 b.kr. at the end of the month.
For further information, contact the Governors of the Central Bank of Iceland or Erla Árnadóttir, Chief Accountant, tel. (+354) 569-9600.
No. 30/2004
November 4, 2004