COPENHAGEN, Feb 4 (Reuters) - Denmark’s foreign exchange reserves, a monetary policy tool, rose slightly to 475.7 billion Danish crowns ($86.18 billion) in January the central bank said on Tuesday.
The central bank said it has undertaken a value adjustment of the foreign exchange reserves. The adjustment has led to net write-down of the foreign-exchange reserve by 11.9 billion crowns, so that at the end of 2013 the foreign-exchange reserve was 474.0 billion crowns.
The bank said it did not intervene in the foreign exchange market in January to steady the crown.
Changes in the forex reserves are a pointer to interest rate setting if they stem from central bank intervention in the market because such action by the bank tends to precede changes in interest rates.
European Union member but euro zone outsider Denmark’s policy of holding the crown steady against the euro means that the central bank shifts interest rates for the sole purpose of keeping the crown around its central parity of 7.46038 per euro .
$1 = 5.5200 Danish crowns Reporting by Teis Jensen