Consolidated financial statement of the Eurosystem as at 3 July 2009

8 July 2009

As announced on 7 May 2009, the Governing Council of the European Central Bank (ECB) has decided to purchase euro-denominated covered bonds issued in the euro area. For presentational purposes, asset item 7, entitled “ Securities of euro area residents denominated in euro”, has been divided into two positions: asset item 7.1, entitled “ Securities held for monetary policy purposes”, which has been introduced in order to reflect the euro-denominated covered bond portfolio, which will commence in July 2009; and asset item 7.2, entitled “ Other securities”, which includes marketable securities that are not related to the monetary policy operations of the Eurosystem (which previously accounted for the whole of asset item 7). This week’s consolidated financial statement has been drawn up in accordance with this new balance sheet format.

Items not related to monetary policy operations

In the week ending 3 July 2009, the decrease of EUR 8.5 billion in gold and gold receivables (asset item 1) mainly reflected quarterly revaluation adjustments, as well as 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 10.5 billion to EUR 206.2 billion. The change was due to the effect of the quarterly revaluation adjustments, customer and portfolio transactions, and US dollar liquidity-providing transactions.

Extraordinary transactions

Value date Type of transaction Maturing amount New amount
1 July 2009 7-day Swiss franc liquidity-providing EUR/CHF foreign exchange swap CHF 30.5 billion CHF 29 billion
2 July 2009 7-day US dollar liquidity-providing reverse transaction USD 40.6 billion USD 39.3 billion
2 July 2009 28-day US dollar liquidity-providing reverse transaction USD 1.9 billion USD 0.2 billion

The liquidity-providing transactions were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangements (swap lines) that the ECB has with the Swiss National Bank and the Federal Reserve System. The EUR/CHF foreign exchange swap 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 (now reported under asset item 7.2) increased by EUR 0.6 billion to EUR 302.2 billion, mainly on account of transactions. Banknotes in circulation (liability item 1) increased by EUR 6.6 billion to EUR 768.7 billion. Liabilities to general government (liability item 5.1) decreased by EUR 44.3 billion to EUR 109.1 billion.

Items related to monetary policy operations

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 141.9 billion to EUR 518.7 billion. On Wednesday, 1 July 2009, a main refinancing operation of EUR 167.9 billion matured and a new one of EUR 105.9 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 0.1 billion (compared with EUR 0.3 billion in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 316 billion (compared with EUR 236.2 billion in the preceding week).

Current accounts of euro area credit institutions

As a result of all transactions, the current account position of credit institutions with the Eurosystem (liability item 2.1) decreased by EUR 99.9 billion to EUR 168.3 billion.

Quarter-end revaluation of the Eurosystem’s assets and liabilities

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 3 July 2009 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 665.770 per fine oz.

USD: 1.4134 per EUR

JPY: 135.51 per EUR

Special drawing rights: EUR 1.0989 per SDR

Assets (EUR millions) Balance Difference compared with last week due to
i)transactions
ii)quarter-end adjustments
Totals/sub-totals may not add up, due to rounding
i) ii)
1 Gold and gold receivables 232,128 −5 −8,495
2 Claims on non-euro area residents denominated in foreign currency 158,863 3,696 −4,570
2.1 Receivables from the IMF 16,844 −12 −381
2.2 Balances with banks and security investments, external loans and other external assets 142,019 3,708 −4,189
3 Claims on euro area residents denominated in foreign currency 66,501 −3,864 −4,746
4 Claims on non-euro area residents denominated in euro 18,263 291 171
4.1 Balances with banks, security investments and loans 18,263 291 171
4.2 Claims arising from the credit facility under ERM II 0 0 0
5 Lending to euro area credit institutions related to monetary policy operations denominated in euro 834,633 −62,205 0
5.1 Main refinancing operations 105,905 −61,998 0
5.2 Longer-term refinancing operations 728,598 0 0
5.3 Fine-tuning reverse operations 0 0 0
5.4 Structural reverse operations 0 0 0
5.5 Marginal lending facility 58 −268 0
5.6 Credits related to margin calls 72 60 0
6 Other claims on euro area credit institutions denominated in euro 23,087 −1,390 0
7 Securities of euro area residents denominated in euro 302,191 630 −24
7.1 Securities held for monetary policy purposes 0 0 0
7.2 Other securities 302,191 630 −24
8 General government debt denominated in euro 36,276 −467 −26
9 Other assets 239,684 −2,880 −1,807
Total assets 1,911,628 −66,195 −19,497
Liabilities (EUR millions) Balance Difference compared with last week due to
i)transactions
ii)quarter-end adjustments
Totals/sub-totals may not add up, due to rounding
i) ii)
1 Banknotes in circulation 768,737 6,590 0
2 Liabilities to euro area credit institutions related to monetary policy operations denominated in euro 484,302 −20,214 0
2.1 Current accounts (covering the minimum reserve system) 168,325 −99,919 0
2.2 Deposit facility 315,955 79,720 0
2.3 Fixed-term deposits 0 0 0
2.4 Fine-tuning reverse operations 0 0 0
2.5 Deposits related to margin calls 22 −15 0
3 Other liabilities to euro area credit institutions denominated in euro 277 53 0
4 Debt certificates issued 0 0 0
5 Liabilities to other euro area residents denominated in euro 116,826 −44,452 0
5.1 General government 109,065 −44,313 0
5.2 Other liabilities 7,761 −138 0
6 Liabilities to non-euro area residents denominated in euro 107,827 −10,050 0
7 Liabilities to euro area residents denominated in foreign currency 5,265 253 −338
8 Liabilities to non-euro area residents denominated in foreign currency 8,476 1,493 −317
8.1 Deposits, balances and other liabilities 8,476 1,493 −317
8.2 Liabilities arising from the credit facility under ERM II 0 0 0
9 Counterpart of special drawing rights allocated by the IMF 5,436 0 −115
10 Other liabilities 153,723 131 −3,571
11 Revaluation accounts 187,797 0 −15,155
12 Capital and reserves 72,963 1 −1
Total liabilities 1,911,628 −66,195 −19,497

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