COPENHAGEN May 2 Denmark's foreign exchange
reserves, a monetary policy tool, fell to 438.3 billion Danish
crowns ($81.42 billion) in April from 459.0 in March the central
bank said on Friday.
"The decrease reflects Danmarks Nationalbank's net sale of
foreign exchange for 19.8 billion crowns, and the central
government's net repayment of foreign debt for 0.9 billion
crowns," it said.
It said that its net sale of foreign exchange due to
intervention in the foreign-exchange market in April amounted to
20.1 billion crowns.
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.
Last week the Danish central bank lifted its rates on
certificates of deposit into positive territory for the first
time since mid-2012.
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 = 5.3830 Danish Crowns)
(Reporting by Teis Jensen)