Consolidated financial statement of the Eurosystem as at 19 December 2008

In the week ending 19 December 2008, the decrease of EUR 125 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 21.2 billion to EUR 353 billion on account of both customer and portfolio transactions and liquidity-providing operations. On Thursday, 18 December 2008, a US dollar liquidity-providing reverse transaction of USD 52.3 billion matured and a new transaction of USD 47.6 billion, with a maturity of 28 days, was settled. On the same day, a further US dollar liquidity-providing reverse transaction of USD 57.4 billion, with a maturity of seven days matured, and a new transaction of USD 41.6 billion, with a maturity of five days, was settled. Also on Thursday, 18 December 2008, a EUR/USD foreign exchange swap operation of USD 4.8 billion matured and a new operation of USD 0.1 billion, with a maturity of 28 days, was settled, and a further EUR/USD foreign exchange swap operation of USD 0.8 billion, with a maturity of seven days matured, and a new operation of USD 5.1 billion, with a maturity of five days, was settled. These foreign exchange 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, 17 December 2008, a EUR/CHF foreign exchange swap operation of CHF 18.9 billion with a maturity of seven days matured, and a new operation of CHF 14.6 billion with a maturity of six days, was settled. On Friday, 19 December 2008, a EUR/CHF foreign exchange swap operation of CHF 0.9 billion, with a maturity of 84 days, was settled. These operations were 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) decreased by EUR 0.6 billion to EUR 120.8 billion. Banknotes in circulation (liability item 1) increased by EUR 9.8 billion to EUR 753.3 billion. Liabilities to general government (liability item 5.1) increased by EUR 6.6 billion to EUR 119.5 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 79.3 billion to EUR 598.9 billion. On Wednesday, 17 December 2008, a main refinancing operation of EUR 217.9 billion matured and a new one of EUR 209.7 billion was settled. On Thursday, 18 December 2008, a longer-term refinancing operation of EUR 50 billion matured and a new one of EUR 50.8 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 2.2 billion (compared with EUR 2.7 billion in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 230.7 billion (compared with EUR 159.2 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 92.9 billion to EUR 205.7 billion.