Consolidated financial statement of the Eurosystem as at 12 September 2008

In the week ending 12 September 2008, the decrease of EUR 41 million in gold and gold receivables (asset item 1) reflected the sale of gold by two Eurosystem central banks (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 0.1 billion to EUR 166.9 billion on account of customer and portfolio transactions and US dollar liquidity-providing operations. On Thursday, 11 September 2008, a US dollar liquidity-providing operation of USD 20 billion matured and a new operation of USD 10 billion was settled, with a maturity of 28 days. On the same day, a further US dollar liquidity-providing operation of USD 10 billion was settled, with a maturity of 84 days. These operations were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangement (swap line) between the ECB and the Federal Reserve System.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) rose by EUR 0.3 billion to EUR 110 billion. Banknotes in circulation (liability item 1) decreased by EUR 2 billion to EUR 682.7 billion. Liabilities to general government (liability item 5.1) decreased by EUR 1 billion to EUR 60.5 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 16.5 billion to EUR 476.4 billion. On Wednesday, 10 September 2008, a main refinancing operation of EUR 160 billion matured and a new one of EUR 176.5 billion was settled. On Thursday, 11 September 2008, a supplementary longer-term refinancing operation of EUR 50 billion matured and a new one of EUR 50 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was virtually nil (approximately the same as in the previous week), and recourse to the deposit facility (liability item 2.2) was EUR 0.1 billion (also approximately the same as in the previous week).

As a result of all transactions, the current account position of credit institutions with the Eurosystem (liability item 2.1) increased by EUR 19 billion to EUR 229.7 billion.