Consolidated financial statement of the Eurosystem as at 14 November 2008

In the week ending 14 November 2008, the decrease of EUR 10 million in gold and gold receivables (asset item 1) reflected the sale of gold by two Eurosystem central banks (consistent with the Central Bank Gold Agreement that came into effect on 27 September 2004) and a purchase of gold coin by another Eurosystem central bank.

The net position of the Eurosystem in foreign currency (asset items 2 and 3 minus liability items 7, 8 and 9) increased by EUR 5.7 billion to EUR 366.7 billion on account of customer and portfolio transactions and liquidity-providing operations. On Thursday, 13 November 2008, a US dollar liquidity-providing reverse transaction of USD 58.6 billion matured and a new transaction of USD 60.6 billion, with a maturity of seven days, was settled. On the same day, a EUR/USD foreign exchange swap operation of USD 1 billion matured and a new operation of USD 1 billion, with a maturity of seven days, was settled. This foreign exchange swap operation 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, 12 November 2008, a EUR/CHF foreign exchange swap operation of CHF 21.2 billion matured and a new operation of CHF 15.2 billion, with a maturity of seven days, was settled. 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. On Wednesday, 12 November 2008, a EUR/DKK foreign exchange swap operation of DKK 27.5 billion, with a maturity of one month, was settled. This operation was conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement (swap line) between the ECB and Danmarks Nationalbank.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) increased by EUR 0.1 billion to EUR 118.8 billion. Banknotes in circulation (liability item 1) decreased by EUR 0.7 billion to EUR 728.6 billion. Liabilities to general government (liability item 5.1) increased by EUR 2 billion to EUR 77.7 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 139 billion to EUR 636.8 billion. On Wednesday, 12 November 2008, a main refinancing operation of EUR 312 billion matured and a new one of EUR 334.4 billion was settled. On Thursday, 13 November 2008, a supplementary longer-term refinancing operation of EUR 50 billion matured and a new one of EUR 66.8 billion, with a maturity of three months, was settled. On the same day, another supplementary longer-term refinancing operation of EUR 41.6 billion, with a maturity of six months, was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 2.7 billion (compared with EUR 8.4 billion in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 163.8 billion (compared with EUR 225.5 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) increased by EUR 127.8 billion to EUR 280.2 billion.