Consolidated financial statement of the Eurosystem as at 7 March 2008

In the week ending 7 March 2008 the decrease of EUR 67 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 0.2 billion to EUR 138 billion on account of customer and portfolio transactions.

The holdings by the Eurosystem of marketable securities of euro area residents denominated in euro (asset item 7) rose by EUR 1 billion to EUR 107.5 billion. Banknotes in circulation (liability item 1) increased by EUR 3.2 billion to EUR 657.3 billion. Liabilities to general government (liability item 5.1) decreased by EUR 10.2 billion to EUR 62 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) fell by EUR 4.2 billion to EUR 446.5 billion. On Wednesday, 5 March 2008, a main refinancing operation of EUR 183 billion matured and a new one of EUR 176.5 billion was settled.

Recourse to the marginal lending facility (asset item 5.5) was virtually nil (approximately the same as in the preceding week), while recourse to the deposit facility (liability item 2.2) was EUR 0.2 billion (also approximately the same as 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 2.3 billion to EUR 195.8 billion.

Exceptional circumstances in one Eurosystem central bank had a retroactive, albeit immaterial, impact on the consolidated financial statement of the Eurosystem as at 29 February 2008 (published on 4 March 2008), as reflected by the actual week-on-week changes in this week’s Eurosystem consolidated financial statement.

The same circumstances also prevented this Eurosystem central bank from producing its balance sheet as at 7 March 2008. Consequently this week’s Eurosystem consolidated financial statement reflects the latest available balance sheet information provided by the Eurosystem central bank in question, which is its financial statement as at 29 February 2008.