Riksbank transfers SEK 8.1 billion to the Government
The Riksbank is transferring SEK 8.1 billion to the Government, as specified in the Annual Report for 1996 which the Bank is presenting today to the Riksdag (Sweden's Parliament). In addition to the Annual Accounts of the Riksbank, the Annual Report contains a presentation of operations in 1996.
The result for the Riksbank for 1996 before balance-sheet allocations is a surplus of SEK 18.6 billion, of which SEK 4.6 billion is allocated to the Balancing Fund. The corresponding figures for 1995 are a surplus of SEK 18.8 billion, an allocation to the Balancing Fund of SEK 14.3 billion and a transfer to the Government of SEK 8.1 billion.
The amount transferred to the Government is based on an average of the results for the last five years.
SEK 6.0 billion is transferred to the Contingency Fund, made up of SEK 4.9 billion for exchange rate movements in 1996 together with 10 per cent of the average result before balance-sheet allocations.
Foreign operations generated a surplus of SEK 14.2 billion in 1996 as against SEK 18.5 billion the year before. The 1996 surplus is made up of SEK 9.4 billion in interest received, SEK 0.2 billion in interest expenditure and SEK 4.9 billion in exchange rate effects.
The smaller surplus on foreign operations in 1996 compared with 1995 is partly a consequence of a lower level of foreign exchange reserves in 1996 but it mainly reflects the greater stability of international interest rates compared with 1995. In that the holding of securities is booked at market values, in 1995 the sharp fall in interest rates had a positive effect on the year's result. The krona's exchange rate weakened towards the end of 1996; together with the negative forward position at the year-end, this generated a positive valuation effect of SEK 4.9 billion.
The average level of foreign exchange reserves in 1996 was SEK 153.4 billion, accompanied by a negative forward exchange position equivalent to SEK 70.1 billion; on a net basis, currency exposure during the year was accordingly restricted to an average of SEK 83.3 billion.
Domestic operations in 1996 resulted in a surplus of SEK 4.8 billion, as against SEK 0.7 billion the year before. The improvement came in part from decreased interest expenditure on account of lower interest rates but above all from a reduced stock of Riksbank liquidity bills. Interest expenditure fell from SEK 10.7 billion in 1995 to SEK 4.9 billion in 1996. The valuation of the holding of Swedish government securities at market values affected the result for 1996 by SEK 9.7 billion, as against SEK 11.2 billion in 1995.
The balance sheet total at the end of 1996 was SEK 212.6 billion as against SEK 257.3 billion a year earlier. The largest asset items are the foreign exchange reserves and the holdings of Swedish government securities. The book value of the foreign exchange reserves decreased from SEK 171.3 billion to SEK 140.2 billion, mainly due to amortisation of the forward stock. The book value of Swedish government securities decreased from SEK 71.0 billion to SEK 59.0 billion at the end of 1996.
For further information, please contact:
Mats Balke, phone no. Int. +46 8 787 02 88
Magnus Alsén, phone no. Int. +46 8 787 01 19
Copies of the Annual Report (in Swedish) are available at the Riksbank entrance at No. 7 Malmskillnadsgatan. They can also be ordered from the Information Centre, fax no.: Int. +46 787 05 26; phone no.: Int. +46 8 787 01 00.
