Consolidated financial statement of the Eurosystem as at 10 July 2009

In the week ending 10 July 2009 the decrease of EUR 2 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).

The net position of the Eurosystem in foreign currency (asset items 2 and 3 minus liability items 7, 8 and 9) increased by EUR 2.5 billion to EUR 208.7 billion on account of customer and portfolio 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 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 (reported under asset item 7.2) decreased by EUR 0.5 billion to EUR 301.7 billion. Banknotes in circulation (liability item 1) increased by EUR 1.5 billion to EUR 770.3 billion. Liabilities to general government (liability item 5.1) increased by EUR 15.6 billion to EUR 124.7 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 133.8 billion to EUR 652.5 billion. On Wednesday, 8 July 2009, a main refinancing operation of EUR 105.9 billion matured and a new one of EUR 106.4 billion was settled. On the same day, a longer-term refinancing operation of EUR 56.8 billion, with a maturity of one month, matured and a new one of EUR 38.3 billion was settled. On Thursday, 9 July 2009, a longer-term refinancing operation of EUR 13.2 billion, with a maturity of three months, matured and a new one of EUR 3 billion was settled. On the same day, a longer-term refinancing operation of EUR 7.6 billion, with a maturity of six months, matured and a new one of EUR 9.1 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was EUR 0.1 billion (approximately the same as in the preceding week), while recourse to the deposit facility (liability item 2.2) was EUR 155.5 billion (compared with EUR 316 billion in the preceding week).

In the course of the previous week, some Eurosystem central banks began to purchase euro-denominated covered bonds in the context of the purchase programme announced on 7 May 2009 following a decision taken by the Governing Council of the European Central Bank. Consequently, the holdings by the Eurosystem of securities held for monetary policy purposes (asset item 7.1) amounted to EUR 0.1 billion in the week ending 10 July 2009.

As a result of all transactions, the current account position of credit institutions with the Eurosystem (liability item 2.1) increased by EUR 103.5 billion to EUR 271.8 billion.