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Denmark's foreign-exchange reserve is owned and managed by Danmarks Nationalbank. The foreign-exchange reserve is therefore an asset on Danmarks Nationalbank's balance sheet. The foreign-exchange reserve mainly comprises secure and liquid assets in the form of deposits with foreign banks and foreign securities, which are easy to sell or use as collateral for loans should the need arise. In addition, Danmarks Nationalbank's stock of gold is included in the foreign-exchange reserve.
The purpose of the foreign-exchange reserve is primarily to support the fixed-exchange-rate policy. In the short term Danmarks Nationalbank can stabilise the krone by buying and selling foreign currency in the market. When Danmarks Nationalbank sells foreign currency (and buys kroner), the krone will tend to strengthen. When Danmarks Nationalbank buys foreign currency (and sells kroner), the krone will tend to weaken.
Two main factors affect the foreign-exchange reserve – Danmarks Nationalbank's purchase and sale of foreign currency, and the central government's raising or repayment of foreign loans. In addition, the value of the foreign-exchange reserve is adjusted at year-end to reflect changes in stock-exchange prices and exchange rates.
The foreign-exchange reserve at month-end and Danmarks Nationalbank's net purchase or sale of foreign currency during the month are published at 4 p.m. on the second banking day of the following month in the "Foreign Exchange and Liquidity" press release.
The following is an example of how the foreign-exchange reserve can be determined from the Nationalbank's Balance Sheet at 31 March 2009.
| Assets | 1000 kr |
| + Stock of gold | 9 781 153 |
| + Foreign assets | 248 892 402 |
| + Claims on the International Monetary Fund | 3 336 333 |
| Liabilities |  |
| - Foreign liabilities | -1 299 486 |
| Foreign currency reserve | 260 710 402 |
Note:The Nationalbank's latest Balance Sheet can be found via the link to the right. |
