Riksbanken has decided to hedge part of the foreign currency reserve by selling €157,693,000 and $665,340,000 over the next four to six months. Riksbanken's decision will hopefully act as a shock absorber and prevent the Swedish krona from weakening further.
Another factor that affects the Swedish krona is the world's concern about the indebted Swedish real estate sector. Yesterday, the distressed real estate company Samhallsbyggnadsbolaget i Norden (SBB) announced that they have an upcoming sale, which means that the company's coffers will receive a much-needed addition of $648,702,000. Analysts hope that if the picture of the real estate sector clears up, it will benefit the Swedish krona in the long run.
Regardless of the outcome of Riksbanken's sale of both € and $, I am glad that they are at least trying. As my father raised us quote "it is better to do wrong than to do nothing" unquote.
No comments:
Post a Comment