Starting in August 2021, the Bundesbank is publishing not only the end-of-month values but also the monthly averages for the German TARGET2 balance on its website. This will allow for a more accurate assessment of changes in the balance. Previously, the Bundesbank published only the end-of-month values for the TARGET2 balance.

End-of-month values for the TARGET2 balance, particularly end-of-quarter and end-of-year values, are frequently influenced by cut-off date effects, which can bring with them stronger fluctuations. These are often a reflection of funds being moved around by investors and credit institutions ahead of balance sheet dates due to portfolio and liquidity considerations, and, in the short term, it is not uncommon for cross-border liquidity flows to increase as a result. Presenting the TARGET2 balance using monthly averages smooths these cut-off date effects so that it is easier to identify trends in the balance that are determined by longer-term factors.