Consolidated financial statement of the Eurosystem as at 9 January 2009

In the week ending 9 January 2009 the decrease of EUR 22 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 7.9 billion to EUR 358.8 billion on account of customer and portfolio transactions and liquidity-providing operations. On Thursday, 8 January 2009, a US dollar liquidity-providing reverse transaction of USD 52.4 billion, with a maturity of 16 days, matured and a new transaction of USD 41.1 billion, with a maturity of seven days, was settled. On the same day, an EUR/USD foreign exchange swap operation of USD 5.4 billion, with a maturity of 16 days, matured and a new operation of USD 3.3 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, 7 January 2009, an EUR/CHF foreign exchange swap operation of CHF 22.6 billion, with a maturity of eight days, matured and a new operation of CHF 25.2 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 Monday, 5 January 2009, a liquidity-providing repurchase transaction of EUR 0.5 billion, with a maturity of five days, matured, affecting claims on non-euro area residents denominated in euro (asset item 4). This transaction was conducted by the Eurosystem in connection with the agreement with the Magyar Nemzeti Bank to provide a facility to support the latter’s operations.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) decreased by EUR 2.5 billion to EUR 280.2 billion. Banknotes in circulation (liability item 1) fell by EUR 12.6 billion to EUR 751.1 billion. Liabilities to general government (liability item 5.1) increased by EUR 5.4 billion to EUR 90.8 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 55.7 billion to EUR 509.8 billion. It should be noted that the decrease of EUR 6.9 billion in fine-tuning reverse operations (liability item 2.4) refers to monetary policy operations conducted by Národná banka Slovenska prior to its entry into the Eurosystem.

On Tuesday, 6 January 2009, a main refinancing operation of EUR 238.9 billion matured and a new one of EUR 216.1 billion was settled. On Thursday, 8 January 2009, a supplementary longer-term refinancing operation of EUR 25 billion matured, with a maturity of six months, and a new one of EUR 7.6 billion, with the same maturity, was settled. On the same day, another supplementary longer-term refinancing operation of EUR 9.5 billion, with a maturity of three months, was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 1.5 billion (compared with EUR 0.9 billion in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 315.3 billion (compared with EUR 281.7 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 55.7 billion to EUR 157.5 billion.