Consolidated financial statement of the Eurosystem as at 26 December 2008

In the week ending 26 December 2008, the decrease of EUR 117 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) increased by EUR 7.8 billion to EUR 360.7 billion on account of customer and portfolio transactions and liquidity-providing operations. On Tuesday, 23 December 2008, a US dollar liquidity-providing reverse transaction of USD 41.6 billion, with a maturity of five days, matured and a new transaction of USD 52.4 billion, with a maturity of 16 days, was settled. On the same day, a EUR/USD foreign exchange swap operation of USD 5.1 billion, with a maturity of five days, matured and a new operation of USD 5.4 billion, with a maturity of 16 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. Also on Tuesday, 23 December 2008, a EUR/CHF foreign exchange swap operation of CHF 14.6 billion, with a maturity of six days, matured and a new operation of CHF 16.9 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 the same day, a EUR/DKK foreign exchange swap operation of DKK 11.2 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 0.5 billion to EUR 121.3 billion. Banknotes in circulation (liability item 1) rose by EUR 12.1 billion to EUR 765.4 billion. Liabilities to general government (liability item 5.1) decreased by EUR 11.6 billion to EUR 107.9 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 14.5 billion to EUR 613.4 billion. On Tuesday, 23 December 2008, a main refinancing operation of EUR 209.7 billion matured and a new one of EUR 223.7 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 1.8 billion (compared with EUR 2.2 billion in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 229.8 billion (compared with EUR 230.7 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) increased by EUR 20.3 billion to EUR 225.9 billion.

Národná banka Slovenska will join the Eurosystem on 1 January 2009. The ECB will therefore publish a consolidated opening financial statement of the Eurosystem as at 1 January 2009 together with the next consolidated weekly financial statement on 7 January 2009.