COPENHAGEN, May 2 (Reuters) - 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