Consolidated financial statement of the Eurosystem as at 29 May 2009

In the week ending 29 May 2009 the decrease of EUR 6 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 purchase of gold 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 1.1 billion to EUR 242.4 billion on account of customer and portfolio transactions, as well as Danish krone foreign exchange swap and US dollar liquidity-providing transactions.

The liquidity-providing transactions were conducted by the Eurosystem in connection with the temporary reciprocal currency arrangements (swap lines) that the European Central Bank has with Danmarks Nationalbank, the Swiss National Bank and the Federal Reserve System. The EUR/CHF foreign exchange swap had no effect on the net position of the Eurosystem in foreign currency.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) increased by EUR 1.9 billion to EUR 296.6 billion. Banknotes in circulation (liability item 1) increased by EUR 3.3 billion to EUR 761.4 billion. Liabilities to general government (liability item 5.1) increased by EUR 10 billion to EUR 151.2 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 54 billion to EUR 657.5 billion. On Wednesday, 27 May 2009, a main refinancing operation of EUR 221.3 billion matured and a new one of EUR 276.8 billion was settled. On Thursday, 28 May 2009, a longer-term refinancing operation of EUR 21.6 billion matured and a new one of EUR 27.5 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 0.2 billion (compared with EUR 0.1 billion in the previous week), while recourse to the deposit facility (liability item 2.2) was EUR 23 billion (compared with EUR 15.6 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 41.2 billion to EUR 247.9 billion.