RBA Balance Sheet

Week Ending 20 May 2020

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.

Peter Sheahan

Director Institutional Markets

P. (02) 9690 2188

M. 0416 207 203

E. peter.sheahan@curve.com.au