Monetary and foreign-exchange policy

Terms and conditions for accounts (documentation basis for the monetary-policy instruments)
Documentation for monetary-policy instruments and settlement of payments is the formal framework for the access to and use of accounts at Danmarks Nationalbank. The terms and conditions specify the overall framework for the extension of credit by Danmarks Nationalbank and the pledging of collateral to Danmarks Nationalbank.

The terms and conditions for accounts are updated and adjusted on an ongoing basis. Administration of the terms and conditions is undertaken by Danmarks Nationalbank's Accounting department.

Limits for current-account deposits
Limits have been set for the size of the monetary-policy counterparties' current-account deposits. If the total overall limit for the counterparties is exceeded, current-account deposits in excess of the individual limits will be converted into certificates of deposit.

Counterparties in foreign-exchange transactions in Danish kroner
The Nationalbank's counterparties in foreign-exchange transactions in Danish kroner are determined in accordance with the market conditions. Requirements regarding a significant market activity subject to the given foreign-exchange conditions and capacity to handle payments via the international financial network SWIFT form the basis for the Nationalbank's choice of counterparties in the foreign-exchange market for Danish kroner. If the Danish exchange rate reaches the upper or lower limit within ERM II, the number of counterparties may be extended. Potential new counterparties will be obliged to settle their foreign-exchange transactions with the Nationalbank via a payment-after-payment procedure.