RBA Balance Sheet

All directional pressures are the same this week as last week.

Liabilities

1. Balance Sheet size remains the same at about $266b.
2. Notes on issue continued to rise which via seignorage is almost pure profit.
3. Exchange settlement balances fell modestly, but we know it reduced by a further $19b to $77b with the $19b Issue of the ACGB 21/12/30’s on 21/5/20. Surplus ES balances fell to $53b from $69b as well.
4. Government deposits rose by $4b via tax receipts and will rise markedly this week via note 3 above.
5. Other liabilities fell by $2.2b meaning credit facilities were repaid, quite possibly further reduction of the US Federal Reserves USD Swap Facility which has been under-utilised.

Assets

1. Gold and Foreign Exchange – AUD lent by the RBA in the FX forwards markets is probably at the lowest level on record as this balance is at a low of $68.5b not seen since 20/2/19.
2. Australian Dollar Investments – Funds lent via Repo represent $129.5 of this $195b. The RBA has also purchased $50b of ACGB, Semi Government and ADI MTN securities via their Yield Curve Control Program.
3. The ratio of foreign / domestic assets fell further to 26 : 74 a marked difference from the 46 : 52 ratio on 30 June 2019 when the respective balances were $86b & $97b.

The 9th of June is a significant date in the repo maturity profile with $7.239b maturing and a total of $45b potentially running off prior to 30 June 2020 if the market seeks to source cheaper funding or available liquidity elsewhere. This maturity profile is below.