The foreign-exchange reserve is used to manage small fluctuations in the supply of and demand for Danish kroner, while the interest rate is only used in connection with imbalances of a more sustained nature. As players in the international capital markets, the pension companies may influence the exchange rate by purchasing and selling securities.
It is therefore important for Danmarks Nationalbank to keep abreast of developments within this sector. In connection with major portfolio restructuring we sometimes see large inflows and outflows of currency. If Danmarks Nationalbank does not act in such a situation, the result could be inappropriate exchange-rate fluctuations. On average, capital imports of kr. 10 billion strengthen the Danish currency by kr.