Investing.com – Denmark’s central bank intervened in the foreign-exchange market in June to defend the after the currency weakened to its lowest level against the euro in more than 25 years.
Danmarks Nationalbank sold in net terms on the market in June for settlement, the central bank said Thursday. The intervention marks the first time since March 2020 that the Danish central bank used market operations to strengthen the krone.
The central bank is mandated to maintain a fixed exchange rate against the euro. Denmark’s foreign-exchange reserve increased by 11.8 billion kroner to 699.3 billion kroner in June, reflecting Danmarks Nationalbank’s net purchase of foreign exchange for 0.8 billion kroner and the central government’s net borrowing of foreign debt for 11.0 billion kroner.
The discount rate, current-account interest rate, and rate of interest on certificates of deposit have stood at 1.85% since June 12, 2026. The lending rate has been 2% since the same date.
The net position of banks and mortgage-credit institutes vis-à-vis Danmarks Nationalbank decreased by 1.0 billion kroner in June to an outstanding amount of 301.1 billion kroner. The central government’s net financing requirement amounted to 0.8 billion kroner in June.
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