Tag Archives: Swedish krona

Loss of global economic momentum and elevated global uncertainties cast a shadow over Scandinavian currencies.The ongoing moderation in global growth continues to weigh on Scandinavian currencies despite their undervaluation. In particular, the weak Q2 GDP figure for Sweden is a reminder that weak economic activity in Germany and the UK (two key trading partners) is spreading to other countries. Furthermore, despite Sweden’s and Norway’s defensive features, such as a structural current...

With the first half of 2018 now drawn to a close, much of the financial medias’ headlines and commentary relating to the gold market has been focusing on the fact that the US dollar gold price has moved lower year-to-date. Specifically, from a US dollar price of $1302.50 at close on 31 December 2017, the price of gold in US dollar terms has slipped by approximately 3.8% over the last six months to around $1252.50, a...

Scandinavian currencies have lost ground lately against the euro, but a favourable economic and policy backdrop point to strengthening of the Swedish krona.Recent months have not been kind to Scandinavian currencies: the Swedish krona and the Norwegian krone lost, respectively, 4.3% and 4.7% against the euro from the start of September to 24 November.The weakness of the Swedish krona could be explained by some disappointment at the re-election of the very dovish Stefan Ingves as Riksbank...

In February 2017 while preparing for a presentation in Gothenburg about central bank gold, I emailed Sweden’s central bank, the Riksbank, enquiring whether the Riksbank physically audits Sweden’s gold and whether it would provide me with a gold bar weight list of Sweden’s gold reserves (gold bar holdings). The Swedish official gold reserves are significant and amount to 125.7 tonnes, making the Swedish nation the...

Improving growth and inflation prospects could help the krona against the euro going forward. The krona is also undervalued against the US dollar, based on fundamentals. At its 7 September meeting, Sweden’s Riksbank decided to keep the repo rate unchanged at -0.5% and to continue to purchase government bonds until the end of the year. The Riksbank acknowledged that the Swedish economy was relatively strong and that inflation was beginning to rise.However, the central bank made clear its...