Consolidated financial statement of the Eurosystem as at 30 June 2006

Items not related to monetary policy operations

In the week ending 30 June 2006, the decrease of EUR 3.9 billion in gold and gold receivables (asset item 1) mainly reflected quarterly revaluation adjustments, as well as sales of gold by two Eurosystem central banks (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) decreased by EUR 6.7 billion to EUR 153.3 billion. The decrease 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 0.7 billion.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) decreased by EUR 0.5 billion to EUR 91.6 billion, due to both transactions and revaluation adjustments. Banknotes in circulation (liability item 1) increased by EUR 4.9 billion to EUR 580.1 billion. Liabilities to general government (liability item 5.1) rose by EUR 10.9 billion to EUR 86.2 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 11.4 billion to EUR 447.4 billion. On Wednesday, 28 June 2006, a main refinancing operation of EUR 316 billion matured and a new one of EUR 328.5 billion was settled. On Thursday, 29 June 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 0.1 billion (compared with virtually nil in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 1.2 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 5.2 billion to EUR 157.4 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 30 June 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 472.272 per fine oz.

USD: 1.2713 per EUR

JPY: 145.75 per EUR

Special drawing rights: EUR 1.1638 per SDR