Consolidated financial statement of the Eurosystem as at 29 December 2006

4 January 2007

Items not related to monetary policy operations

In the week ending 29 December 2006, the increase of EUR 2.8 billion in gold and gold receivables (asset item 1) mainly reflected quarterly revaluation adjustments. Other movements during the week resulted in a net increase of EUR 36 million. This was due mainly to the refining by a Eurosystem central bank of its holdings of gold coin with lower fine gold content into fine gold bullion, which resulted in an accounting movement between this asset item and other assets (asset item 9). This accounting movement more than offset the selling of the equivalent of EUR 19 million of gold by another 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) decreased by EUR 4.8 billion to EUR 147.4 billion owing mainly to the effects of the quarterly revaluation of assets and liabilities. Customer and portfolio transactions in the period under review resulted in a decrease of EUR 0.1 billion.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) decreased by EUR 0.4 billion to EUR 77.6 billion on account of both transactions and revaluation adjustments. Banknotes in circulation (liability item 1) increased by EUR 0.2 billion to EUR 628.2 billion. Liabilities to general government (liability item 5.1) rose by EUR 13 billion to EUR 45.2 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 8.5 billion to EUR 450 billion. On Thursday, 28 December 2006, a main refinancing operation of EUR 321.5 billion matured and a new one of EUR 330.5 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 0.1 billion (compared with virtually nil in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 0.6 billion (also compared with virtually nil in the preceding 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) decreased by EUR 3.7 billion to EUR 173.5 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 29 December 2006 is shown in the additional column headed “Difference compared with last week due to revaluations”. The gold price and the principal exchange rates used for the revaluation of balances were:

Gold: EUR 482.688 per fine oz.

USD: 1.3170 per EUR

JPY: 156.93 per EUR

Special drawing rights: EUR 1.1416 per SDR

Opening financial statement of the Eurosystem for 2007, including Banka Slovenije

Banka Slovenije joined the Eurosystem on 1 January 2007. The ECB will therefore publish a consolidated opening financial statement of the Eurosystem as at 1 January 2007 together with the next consolidated weekly financial statement on 9 January 2007.

Assets (EUR millions) Balance Difference compared with last week due to
i)transactions
ii)revaluations
Totals/sub-totals may not add up, due to rounding
i) ii)
1 Gold and gold receivables 176,768 36 2,717
2 Claims on non-euro area residents denominated in foreign currency 142,291 −6 −4,669
2.1 Receivables from the IMF 10,658 −44 −285
2.2 Balances with banks and security investments, external loans and other external assets 131,633 38 −4,384
3 Claims on euro area residents denominated in foreign currency 23,402 1,096 −559
4 Claims on non-euro area residents denominated in euro 11,967 422 −5
4.1 Balances with banks, security investments and loans 11,967 422 −5
4.2 Claims arising from the credit facility under ERM II 0 0 0
5 Lending to euro area credit institutions related to monetary policy operations denominated in euro 450,540 9,042 0
5.1 Main refinancing operations 330,452 8,954 0
5.2 Longer-term refinancing operations 120,000 0 0
5.3 Fine-tuning reverse operations 0 0 0
5.4 Structural reverse operations 0 0 0
5.5 Marginal lending facility 88 88 0
5.6 Credits related to margin calls 0 0 0
6 Other claims on euro area credit institutions denominated in euro 11,360 563 0
7 Securities of euro area residents denominated in euro 77,614 −186 −184
8 General government debt denominated in euro 39,359 −527 −26
9 Other assets 217,679 197 748
Total assets 1,150,980 10,636 −1,977
Liabilities (EUR millions) Balance Difference compared with last week due to
i)transactions
ii)revaluations
Totals/sub-totals may not add up, due to rounding
i) ii)
1 Banknotes in circulation 628,238 227 0
2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euro 174,051 −3,175 0
2.1 Current accounts (covering the minimum reserve system) 173,482 −3,714 0
2.2 Deposit facility 567 538 0
2.3 Fixed-term deposits 0 0 0
2.4 Fine-tuning reverse operations 0 0 0
2.5 Deposits related to margin calls 2 1 0
3 Other liabilities to euro area credit institutions denominated in euro 65 −22 0
4 Debt certificates issued 0 0 0
5 Liabilities to other euro area residents denominated in euro 53,354 12,844 0
5.1 General government 45,165 13,012 0
5.2 Other liabilities 8,189 −168 0
6 Liabilities to non-euro area residents denominated in euro 16,614 −334 0
7 Liabilities to euro area residents denominated in foreign currency 89 3 −2
8 Liabilities to non-euro area residents denominated in foreign currency 12,621 1,182 −417
8.1 Deposits, balances and other liabilities 12,621 1,182 −417
8.2 Liabilities arising from the credit facility under ERM II 0 0 0
9 Counterpart of special drawing rights allocated by the IMF 5,582 0 −119
10 Other liabilities 73,788 −64 291
11 Revaluation accounts 121,991 0 −1,730
12 Capital and reserves 64,587 −25 0
Total liabilities 1,150,980 10,636 −1,977

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