Consolidated financial statement of the Eurosystem as at 20 February 2009

In the week ending 20 February 2009 the decrease of EUR 166 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) and the net purchase of gold coin by another Eurosystem central bank.

The net position of the Eurosystem in foreign currency (asset items 2 and 3 minus liability items 7, 8 and 9) decreased by EUR 1.3 billion to EUR 310.4 billion on account of customer and portfolio transactions and US dollar liquidity-providing operations. On Thursday, 19 February 2009, a US dollar liquidity-providing reverse transaction of USD 70 billion matured, and a new transaction of USD 65.8 billion, with a maturity of seven days, was settled. This transaction was 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. On Wednesday, 18 February 2009, an EUR/CHF foreign exchange swap operation of CHF 35.7 billion matured and a new operation of CHF 33.5 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 Friday, 20 February 2009, an overnight liquidity-providing repurchase transaction of EUR 0.2 billion was settled, affecting claims on non-euro area residents denominated in euro (asset item 4). This transaction was conducted by the Eurosystem in connection with the agreement with the Magyar Nemzeti Bank to provide a facility to support the latter’s operations.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) increased by EUR 1.4 billion to EUR 285.1 billion. Banknotes in circulation (liability item 1) decreased by EUR 1.5 billion to EUR 739.3 billion. Liabilities to general government (liability item 5.1) rose by EUR 23.1 billion to EUR 105.7 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 13.6 billion to EUR 618.8 billion. On Wednesday, 18 February 2009, a main refinancing operation of EUR 197.7 billion matured and a new one of EUR 215.3 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 1.4 billion (compared with EUR 0.6 billion in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 80 billion (compared with EUR 75.9 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) decreased by EUR 4.1 billion to EUR 243.4 billion.

It should be noted with respect to the consolidated weekly financial statement of the Eurosystem as at 13 February 2009 (published on 17 February 2009) that balances with banks and security investments, external loans and other external assets (asset item 2.2) and claims on euro area residents denominated in foreign currency (asset item 3) should have shown a balance of EUR 145,666 million and EUR 168,736 million respectively, instead of EUR 146,114 million and EUR 168,287 million. In addition, other liabilities (liability item 10) should have read EUR 175,848 million instead of EUR 175,849 million.

The actual week-on-week changes shown in this week’s financial statement already include the aforementioned changes.