Liquidity risk revisited


What has been the impact of the crisis on reserve management at the Danish central bank?

The Danish central bank intervened in autumn 2008 and this obviously had a direct effect on the level of reserves. There has been a considerable drain on reserves, as the central bank spent Dkr64 billion ($10.8 billion) on intervention in October. In addition we have seen a situation where the money market has been dysfunctional.

Was there anything new about the intervention?

The new aspects which surprised