Danmarks Nationalbank intervened in the foreign-exchange market during June to support the krone and maintain its fixed exchange-rate link with the euro after the currency slid to its weakest point against the euro in more than 25 years.
The central bank reported that it sold 0.7 billion kroner in net terms on the market in June for settlement. That operation marked the first time the bank had used market transactions explicitly to strengthen the krone since March 2020.
Danmarks Nationalbank also reported movements in its reserves and the public sector's external borrowing. Foreign-exchange reserves increased by 11.8 billion kroner in June, bringing total reserves to 699.3 billion kroner. The reserve increase reflected two components reported by the bank: a net purchase of foreign exchange by Danmarks Nationalbank amounting to 0.8 billion kroner, and net foreign debt borrowing by the central government of 11.0 billion kroner.
Monetary policy settings reported by the bank show the discount rate, the current-account interest rate, and the rate of interest on certificates of deposit have all been held at 1.85% since June 12, 2026. The lending rate has been set at 2% since the same date.
The central bank also provided figures on the banking sector's position vis-a-vis the central bank. The net position of banks and mortgage-credit institutes relative to Danmarks Nationalbank fell by 1.0 billion kroner in June, leaving an outstanding balance of 301.1 billion kroner. Separately, the central government’s net financing requirement for June was 0.8 billion kroner.
These figures outline the immediate market response and balance-sheet effects tied to the krone's recent weakness and the central bank's decision to act. The intervention and the reserve movements illustrate the mechanics the authorities used to defend the fixed exchange-rate arrangement with the euro, as well as the interplay between central-bank operations and central-government external financing in the month of June.