41. A Primer on the Balance Sheet of the Eurosystem
- Author:
- Daniel Gros
- Publication Date:
- 02-1999
- Content Type:
- Policy Brief
- Institution:
- Centre for European Policy Studies
- Abstract:
- The ECB has just published the opening balance sheet for the Eurosystem, which is the official name given to the ECB plus the 11 national central banks of the euro zone. All 15 national central banks are part of the ESCB, but the participation of the four outsiders is purely formal. The balance sheet, which is reproduced at the end of this Commentary, reveals two very interesting facts: During 1998, the national central banks of the euro zone increased their holdings of dollar foreign exchange reserves by the equivalent of about 38 bn euro. This means that they de facto intervened consistently to support the dollar during that year. The ECB starts with huge foreign exchange reserves: 237 bn euro plus gold worth 100 bn euro. This is much more than the amount held by the US Federal Reserve and constitutes a major share of the reserves held by all OECD countries.
- Topic:
- Economics, International Trade and Finance, and Regional Cooperation
- Political Geography:
- Europe