Consolidated financial statement of the Eurosystem as at 3 October 2008

8 October 2008

Items not related to monetary policy operations

In the week ending 3 October 2008, the net increase of EUR 12.3 billion in gold and gold receivables (asset item 1) mainly reflected quarterly revaluation adjustments. Transactions during the week resulted in a net decrease of EUR 157 million. This reflected, first, the sale of gold by one Eurosystem central bank (consistent with the Central Bank Gold Agreement that came into effect on 27 September 2004) and, second, the refining by a Eurosystem central bank of gold coin and bars into fine gold bullion.

The net position of the Eurosystem in foreign currency (asset items 2 and 3 minus liability items 7, 8 and 9) rose by EUR 34.9 billion to EUR 249.2 billion. The change was due to customer and portfolio transactions, US dollar liquidity-providing operations and the effect of the quarterly revaluation of assets and liabilities. On Friday, 3 October 2008, a US dollar overnight liquidity-providing operation amounting to USD 50 billion was settled. On the same day, a further US dollar liquidity-providing operation of USD 35 billion, with a maturity of seven days, matured. 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) increased by EUR 1.8 billion to EUR 113.1 billion. EUR 1.4 billion of this increase was caused by revaluations. Banknotes in circulation (liability item 1) increased by EUR 11.5 billion to EUR 693.2 billion. Liabilities to general government (liability item 5.1) rose by EUR 16 billion to EUR 71.4 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 56.9 billion to EUR 402.4 billion. On Tuesday, 30 September 2008, a special term refinancing operation of EUR 120 billion was settled. On Wednesday, 1 October 2008, a main refinancing operation of EUR 180 billion matured and a new one of EUR 190 billion was settled. On Friday, 3 October 2008, a liquidity-absorbing fine-tuning operation of EUR 193.8 billion, with an overnight maturity, was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 24.6 billion (compared with EUR 6.8 billion in the preceding week), while recourse to the deposit facility (liability item 2.2) was EUR 38.9 billion (compared with EUR 28.1 billion 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) decreased by EUR 62 billion to EUR 153.4 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 September 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 627.141 per fine oz.

USD: 1.4303 per EUR

JPY: 150.47 per EUR

Special drawing rights: EUR 1.0884 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 220,392 −157 12,438
2 Claims on non-euro area residents denominated in foreign currency 148,623 3,852 10,363
2.1 Receivables from the IMF 9,792 79 526
2.2 Balances with banks and security investments, external loans and other external assets 138,831 3,773 9,837
3 Claims on euro area residents denominated in foreign currency 132,210 23,943 5,114
4 Claims on non-euro area residents denominated in euro 13,939 −938 −165
4.1 Balances with banks, security investments and loans 13,939 −938 −165
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 635,117 147,806 0
5.1 Main refinancing operations 189,999 9,998 0
5.2 Longer-term refinancing operations 420,519 120,003 0
5.3 Fine-tuning reverse operations 0 0 0
5.4 Structural reverse operations 0 0 0
5.5 Marginal lending facility 24,592 17,804 0
5.6 Credits related to margin calls 7 1 0
6 Other claims on euro area credit institutions denominated in euro 75,502 29,094 0
7 Securities of euro area residents denominated in euro 113,120 404 1,432
8 General government debt denominated in euro 37,448 0 −26
9 Other assets 382,346 9,860 −2,871
Total assets 1,758,697 213,864 26,285
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 693,205 11,546 0
2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euro 386,132 142,671 0
2.1 Current accounts (covering the minimum reserve system) 153,367 −62,026 0
2.2 Deposit facility 38,854 10,795 0
2.3 Fixed-term deposits 193,844 193,844 0
2.4 Fine-tuning reverse operations 0 0 0
2.5 Deposits related to margin calls 67 58 0
3 Other liabilities to euro area credit institutions denominated in euro 199 −119 0
4 Debt certificates issued 0 0 0
5 Liabilities to other euro area residents denominated in euro 79,018 16,692 0
5.1 General government 71,392 15,962 0
5.2 Other liabilities 7,626 730 0
6 Liabilities to non-euro area residents denominated in euro 161,598 34,134 0
7 Liabilities to euro area residents denominated in foreign currency 1,334 −960 158
8 Liabilities to non-euro area residents denominated in foreign currency 24,970 7,613 1,289
8.1 Deposits, balances and other liabilities 24,970 7,613 1,289
8.2 Liabilities arising from the credit facility under ERM II 0 0 0
9 Counterpart of special drawing rights allocated by the IMF 5,367 0 247
10 Other liabilities 166,516 2,287 8,277
11 Revaluation accounts 168,678 0 16,314
12 Capital and reserves 71,680 0 0
Total liabilities 1,758,697 213,864 26,285

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