Consolidated financial statement of the Eurosystem as at 3 October 2008

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.

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).

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.

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