Consolidated financial statement of the Eurosystem as at 31 December 2007

9 January 2008

Items not related to monetary policy operations

On Monday, 31 December 2007, the increase of EUR 17.1 billion in gold and gold receivables (asset item 1) mainly reflected quarterly revaluation adjustments, as well as the sale 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) decreased by EUR 3.4 billion to EUR 153.8 billion. The change 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) fell by EUR 0.1 billion to EUR 96 billion, with a decrease of EUR 0.3 billion on account of transactions more than offsetting an increase caused by revaluations. Banknotes in circulation (liability item 1) decreased by EUR 1.9 billion to EUR 676.7 billion. Liabilities to general government (liability item 5.1) rose by EUR 1.2 billion to EUR 38.1 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 41.6 billion to EUR 525.3 billion. On Monday, 31 December 2007, a liquidity-absorbing fine-tuning operation of EUR 150 billion, conducted through the collection of fixed-term deposits, matured, while a new one of EUR 101.6 billion was settled on the same day.

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 8.8 billion (compared with EUR 1.9 billion 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) increased by EUR 44.2 billion to EUR 267.3 billion.

Quarter-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 31 December 2007 is shown in the additional column “ Difference compared with last week due to quarter-end adjustments”. The gold price and the principal exchange rates used for the revaluation of balances were as follows:

Gold: EUR 568.236 per fine oz.

USD: 1.4721 per EUR

JPY: 164.93 per EUR

Special drawing rights: EUR 1.0740 per SDR

Assets (EUR millions) Balance Difference compared with last week due to
i)transactions
ii)quarter-end adjustments
Totals/sub-totals may not add up, due to rounding
i) ii)
1 Gold and gold receivables 201,546 −17 17,069
2 Claims on non-euro area residents denominated in foreign currency 135,171 119 −2,953
2.1 Receivables from the IMF 9,055 0 −195
2.2 Balances with banks and security investments, external loans and other external assets 126,116 119 −2,758
3 Claims on euro area residents denominated in foreign currency 41,911 49 −1,305
4 Claims on non-euro area residents denominated in euro 13,827 220 −28
4.1 Balances with banks, security investments and loans 13,827 220 −28
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 637,176 69 0
5.1 Main refinancing operations 368,607 0 0
5.2 Longer-term refinancing operations 268,476 0 0
5.3 Fine-tuning reverse operations 0 0 0
5.4 Structural reverse operations 0 0 0
5.5 Marginal lending facility 91 69 0
5.6 Credits related to margin calls 2 0 0
6 Other claims on euro area credit institutions denominated in euro 23,898 146 0
7 Securities of euro area residents denominated in euro 96,045 −335 229
8 General government debt denominated in euro 37,063 −2 −26
9 Other assets 324,609 100 −2,907
Total assets 1,511,244 344 10,082
Liabilities (EUR millions) Balance Difference compared with last week due to
i)transactions
ii)quarter-end adjustments
Totals/sub-totals may not add up, due to rounding
i) ii)
1 Banknotes in circulation 676,677 −1,886 0
2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euro 379,181 2,671 0
2.1 Current accounts (covering the minimum reserve system) 267,335 44,180 0
2.2 Deposit facility 8,831 6,935 0
2.3 Fixed-term deposits 101,580 −48,419 0
2.4 Fine-tuning reverse operations 0 0 0
2.5 Deposits related to margin calls 1,435 −25 0
3 Other liabilities to euro area credit institutions denominated in euro 126 −1 0
4 Debt certificates issued 0 0 0
5 Liabilities to other euro area residents denominated in euro 46,173 1,414 0
5.1 General government 38,116 1,180 0
5.2 Other liabilities 8,057 234 0
6 Liabilities to non-euro area residents denominated in euro 45,090 −418 0
7 Liabilities to euro area residents denominated in foreign currency 2,490 230 −94
8 Liabilities to non-euro area residents denominated in foreign currency 15,552 −93 −593
8.1 Deposits, balances and other liabilities 15,552 −93 −593
8.2 Liabilities arising from the credit facility under ERM II 0 0 0
9 Counterpart of special drawing rights allocated by the IMF 5,278 0 −120
10 Other liabilities 124,377 −1,540 −5,460
11 Revaluation accounts 147,410 6 16,344
12 Capital and reserves 68,890 −40 6
Total liabilities 1,511,244 344 10,082

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