Menu

Search

  |   Commentary

Menu

  |   Commentary

Search

Danish foreign exchange reserves rise in January, DN likely to keep key policy rate on hold

Danish central bank has published the foreign exchange reserve and central bank balance sheet data for the month of January. The country’s FX reserve rose to DKK 464 billion in January from December’s revised DKK 462 billion. Danmarks Nationalbank did not intervene in the month. Government deposits rose to DKK 156 billion from December’s DKK 135 billion.

The large rise in government deposits is likely because of huge payments of pension taxes that take place in January and February every year. The government had just expected around DKK 16 billion, but the data shows that payments would be higher, noted Danske Bank in a research report.

The Finance ministry has a year-end target of DKK 75-100 billion for the level of government deposits. Therefore, the rise leaves plenty of room to cover the DKK 32 billion that the Debt Management Office plans to draw on the account this year to cover the domestic funding need, which includes buybacks of the new government guaranteed mortgage bonds.

“For EUR/DKK, we forecast it to trade around 7.4450 on 1-6M and 7.4475 on 12M and for DN to keep the key policy rate, the rate of interest on certificates of deposit, unchanged at minus 0.65 percent on 12M. We see some short-term downside risk to our forecast as the aforementioned rise in government deposits may lead to tighter DKK liquidity over the coming months and support the DKK”, added Dankse Bank.

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest

  • ET PRO
  • Market Data

Market-moving news and views, 24 hours a day >

May 25 16:00 UTC Released

USCattle Marketed

Actual

106 %

Forecast

106 %

Previous

96 %

May 25 16:00 UTC Released

USCattle On Feed

Actual

105 %

Forecast

104.9 %

Previous

107 %

January 31 00:00 UTC 166181166181m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 166181166181m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 178001178001m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 166181166181m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 22 19:00 UTC 178001178001m

ARTrade Balance

Actual

Forecast

Previous

-1541 %

January 31 00:00 UTC 166181166181m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 166181166181m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

January 31 00:00 UTC 166181166181m

ARAnnual Primary Balance*

Actual

Forecast

2016 bln ARS

Previous

Bln AR bln ARS

Close

Welcome to EconoTimes

Sign up for daily updates for the most important
stories unfolding in the global economy.