Consolidated financial statement of the Eurosystem as at 24 October 2008

In the week ending 24 October 2008, the decrease of EUR 1 million in gold and gold receivables (asset item 1) reflected 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) decreased by EUR 12.4 billion to EUR 330.9 billion on account of customer and portfolio transactions and US dollar liquidity-providing operations. On Thursday, 23 October 2008, a US dollar liquidity-providing reverse transaction of USD 25 billion matured and a new transaction of USD 101.9 billion was settled, with a maturity of 28 days. On the same day, a further US dollar liquidity-providing reverse transaction of USD 170.9 billion matured and a new transaction of USD 68 billion was settled, with a maturity of seven days. Also on Thursday, 23 October 2008, a US dollar currency swap operation of USD 22.6 billion was settled, with a maturity of 28 days, and, on the same day, a further US dollar currency swap operation of USD 3.9 billion was settled, with a maturity of seven days. These two currency swap operations had no effect on the net position of the Eurosystem in foreign currency. All US dollar-denominated transactions were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement (swap line) between the European Central Bank (ECB) and the Federal Reserve System. On Wednesday, 22 October 2008, a Swiss franc currency swap operation of CHF 22.3 billion was settled, with a maturity of seven days. This operation was conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement (swap line) between the ECB and the Swiss National Bank and had no effect on the net position of the Eurosystem in foreign currency.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) increased by EUR 1.5 billion to EUR 116.3 billion. Banknotes in circulation (liability item 1) rose by EUR 1.3 billion to EUR 723.1 billion. Liabilities to general government (liability item 5.1) increased by EUR 40.3 billion to EUR 120.3 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) increased by EUR 31.2 billion to EUR 564.6 billion. On Wednesday, 22 October 2008, a main refinancing operation of EUR 310 billion matured and a new one of EUR 304 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 14.1 billion (compared with EUR 14 billion in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 202.6 billion (compared with EUR 239.6 billion in the preceding week).

As a result of all transactions, the current account position of credit institutions with the Eurosystem (liability item 2.1) decreased by EUR 49.3 billion to EUR 181.2 billion.