Consolidated financial statement of the Eurosystem as at 10 October 2008

In the week ending 10 October 2008, the decrease of EUR 153 million in gold and gold receivables (asset item 1) corresponded, first, to 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, second, to the net sale 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) increased by EUR 29.8 billion to EUR 279 billion on account of customer and portfolio transactions and US dollar liquidity-providing operations. On Thursday, 9 October 2008, a US dollar liquidity-providing operation of USD 10 billion matured and a new operation of USD 20 billion was settled, with a maturity of 84 days. On Friday, 10 October 2008, a US dollar overnight liquidity-providing operation of USD 93.9 billion was settled. 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) increased by EUR 0.4 billion to EUR 113.6 billion. Banknotes in circulation (liability item 1) rose by EUR 18.9 billion to EUR 712.1 billion. Liabilities to general government (liability item 5.1) fell by EUR 6.5 billion to EUR 64.9 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 182.3 billion to EUR 584.6 billion. On Monday, 6 October 2008, a liquidity-absorbing fine-tuning operation of EUR 193.8 billion matured. On Wednesday, 8 October 2008, a main refinancing operation of EUR 190 billion matured and a new one of EUR 250 billion was settled. On Thursday, 9 October 2008, a supplementary longer-term refinancing operation of EUR 25 billion matured and a new one of EUR 50 billion was settled. On the same day, a liquidity-providing fine-tuning operation of EUR 24.7 billion, with a six-day maturity, was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 16.6 billion (compared with EUR 24.6 billion in the preceding week), while recourse to the deposit facility (liability item 2.2) was EUR 154.7 billion (compared with EUR 38.9 billion 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 142.5 billion to EUR 295.8 billion.

It should be noted that the figures in the consolidated weekly financial statement of the Eurosystem as at 3 October 2008 (published on 8 October 2008) have changed due to technical adjustments in one Eurosystem central bank. These changes are, however, deemed to be immaterial and, consequently, a republication of the consolidated weekly financial statement of the Eurosystem as at 3 October 2008 is not necessary. The actual week-on-week changes shown in this week’s financial statement already include the aforementioned changes.