Consolidated financial statement of the Eurosystem as at 4 July 2008

9 July 2008

Items not related to monetary policy operations

In the week ending 4 July 2008, the decrease of EUR 333 million 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 that came into effect on 27 September 2004).

The net position of the Eurosystem in foreign currency (asset items 2 and 3 minus liability items 7, 8 and 9) fell by EUR 1.9 billion to EUR 166 billion. The change was due mainly to the effects of the quarterly revaluation of assets and liabilities, with customer and portfolio transactions carried out by Eurosystem central banks in the period under review resulting in a decrease of EUR 0.1 billion. On Thursday, 3 July 2008, a US dollar liquidity-providing operation of USD 25 billion matured and a new operation of USD 25 billion was settled, with a maturity of 28 days. These operations were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement (swap line) between the ECB and the Federal Reserve System.

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 112.6 billion, with a decrease of EUR 1.8 billion caused by revaluations. Banknotes in circulation (liability item 1) increased by EUR 6.5 billion to EUR 683.9 billion. Liabilities to general government (liability item 5.1) decreased by EUR 14.5 billion to EUR 59.9 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) decreased by EUR 53.1 billion to EUR 429.2 billion. On Wednesday, 2 July 2008, a main refinancing operation of EUR 208 billion matured and a new one of EUR 154.5 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was virtually nil (approximately the same as in the preceding week), while recourse to the deposit facility (liability item 2.2) was EUR 0.3 billion (compared with EUR 0.7 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) decreased by EUR 47.5 billion to EUR 179.1 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 30 June 2008 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 591.696 per fine oz.

USD: 1.5764 per EUR

JPY: 166.44 per EUR

Special drawing rights: EUR 1.0354 per SDR

Additional remark

As noted in the press release dated 22 April 2008, one Eurosystem central bank was prevented, on account of exceptional circumstances, from producing its balance sheet for the Eurosystem consolidated financial statement between 29 February and 11 April 2008. The unavailability of data from the relevant Eurosystem central bank resulted for a time in incomplete data in the Eurosystem consolidated financial statements published during that period and in the European Central Bank’s Statistical Data Warehouse. The Statistical Data Warehouse now includes complete data from the Eurosystem central bank in question. For reference, the Statistical Data Warehouse can be accessed via the following link: http://sdw.ecb.europa.eu/.

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 209,020 −61 −272
2 Claims on non-euro area residents denominated in foreign currency 137,606 3,942 −1,606
2.1 Receivables from the IMF 9,297 −1 −48
2.2 Balances with banks and security investments, external loans and other external assets 128,309 3,943 −1,558
3 Claims on euro area residents denominated in foreign currency 55,267 −799 −217
4 Claims on non-euro area residents denominated in euro 15,130 469 −25
4.1 Balances with banks, security investments and loans 15,130 469 −25
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 429,499 −53,507 0
5.1 Main refinancing operations 154,500 −53,501 0
5.2 Longer-term refinancing operations 274,995 −9 0
5.3 Fine-tuning reverse operations 0 0 0
5.4 Structural reverse operations 0 0 0
5.5 Marginal lending facility 4 4 0
5.6 Credits related to margin calls 0 −1 0
6 Other claims on euro area credit institutions denominated in euro 30,886 −837 0
7 Securities of euro area residents denominated in euro 112,619 −318 −1,771
8 General government debt denominated in euro 37,461 −515 −26
9 Other assets 377,404 −941 −1,334
Total assets 1,404,892 −52,567 −5,251
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 683,943 6,502 0
2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euro 179,335 −47,873 0
2.1 Current accounts (covering the minimum reserve system) 179,055 −47,473 0
2.2 Deposit facility 271 −403 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 9 3 0
3 Other liabilities to euro area credit institutions denominated in euro 270 64 0
4 Debt certificates issued 0 0 0
5 Liabilities to other euro area residents denominated in euro 66,893 −14,511 0
5.1 General government 59,881 −14,519 0
5.2 Other liabilities 7,012 8 0
6 Liabilities to non-euro area residents denominated in euro 77,669 199 0
7 Liabilities to euro area residents denominated in foreign currency 1,765 −1,222 −11
8 Liabilities to non-euro area residents denominated in foreign currency 20,017 4,449 −7
8.1 Deposits, balances and other liabilities 20,017 4,449 −7
8.2 Liabilities arising from the credit facility under ERM II 0 0 0
9 Counterpart of special drawing rights allocated by the IMF 5,120 0 −28
10 Other liabilities 145,848 −171 −1,338
11 Revaluation accounts 152,364 0 −3,867
12 Capital and reserves 71,668 −4 0
Total liabilities 1,404,892 −52,567 −5,251

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