Consolidated financial statement of the Eurosystem as at 29 September 2006

Items not related to monetary policy operations

In the week ending 29 September 2006, the increase of EUR 1.1 billion in gold and gold receivables (asset item 1) mainly reflected quarterly revaluation adjustments, as well as the selling of gold by one Eurosystem central bank (consistent with the Central Bank Gold Agreement of 27 September 2004).

The net position of the Eurosystem in foreign currency (asset items 2 and 3 minus liability items 7, 8 and 9) increased by EUR 1.6 billion to EUR 152.9 billion. The increase was due mainly to the effects of the quarterly revaluation of assets and liabilities, while customer and portfolio transactions carried out by Eurosystem central banks in the period under review resulted in a decrease of EUR 0.3 billion.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) decreased by EUR 1.5 billion to EUR 81.6 billion, with a decrease of EUR 1.8 billion due to transactions which more than offset an increase due to revaluations. Banknotes in circulation (liability item 1) increased by EUR 3.3 billion to EUR 589.2 billion. Liabilities to general government (liability item 5.1) rose by EUR 3.5 billion to EUR 66.4 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) increased by EUR 1.3 billion to EUR 432.3 billion. On Wednesday, 27 September 2006, a main refinancing operation of EUR 311 billion matured and a new one of EUR 313 billion was settled. On Thursday, 28 September 2006, a longer-term refinancing operation of EUR 40 billion matured and a new one of EUR 40 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 0.5 billion (compared with virtually nil in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 1.3 billion (also compared with virtually nil 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 5.1 billion to EUR 162 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 29 September 2006 is shown in the additional column “Difference compared with last week due to revaluations”. The gold price and the principal exchange rates used for the revaluation of balances were as follows:

Gold: EUR 475.316 per fine oz.

USD: 1.2660 per EUR

JPY: 149.34 per EUR

Special drawing rights: EUR 1.1657 per SDR