Consolidated financial statement of the Eurosystem as at 30 December 2005

Items not related to monetary policy operations

In the week ending 30 December 2005, the net increase of EUR 15.7 billion in gold and gold receivables (asset item 1) mainly reflected quarterly revaluation adjustments, but also sales of gold by one Eurosystem central bank (consistent with the Central Bank Gold Agreement of 27 September 2004).

The net position of the Eurosystem in foreign currency (asset items 2 and 3 minus liability items 7, 8 and 9) increased by EUR 2 billion to EUR 163.1 billion. The increase was due mainly to the effects of the quarterly revaluation of assets and liabilities.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) decreased by EUR 2.1 billion to EUR 92.4 billion, in large part due to transactions. Banknotes in circulation (liability item 1) fell by EUR 2.7 billion to EUR 565.2 billion. Liabilities to general government (liability item 5.1) decreased by EUR 1.4 billion to EUR 34.2 billion.

Items related to monetary policy operations

The Eurosystem’s net lending to credit institutions (asset item 5 minus liability items 2.2, 2.3, 2.4, 2.5 and 4) increased by EUR 1.7 billion to EUR 405.7 billion. On Thursday, 29 December 2005, a main refinancing operation of EUR 314 billion matured and a new one of EUR 315 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 0.9 billion (compared with virtually nil in the preceding week), while recourse to the deposit facility (liability item 2.2) was EUR 0.3 billion (also compared with virtually nil in the previous week).

Current accounts of euro area credit institutions

As a result of all transactions, the current account position of credit institutions with the Eurosystem (liability item 2.1) increased by EUR 4.6 billion to EUR 155.3 billion.

Year-end revaluation of the Eurosystem’s assets and liabilities

In line with the Eurosystem’s harmonised accounting rules, gold, foreign exchange, securities holdings and financial instruments of the Eurosystem are revalued at market rates and prices as at the end of each quarter. The net impact of the revaluation on each balance sheet item as at the end of 2005 is shown in the additional column “Difference compared with last week due to revaluations”. The gold price and the principal exchange rates used for the revaluation of balances were as follows:

Gold: EUR 434.856 per fine oz.

USD: 1.1797 per EUR

JPY: 138.90 per EUR

Special drawing rights: EUR 1.2099 per SDR