The Swedish Krona has hit a 15-month high against the US Dollar after Sweden’s Central Bank Deputy Governor Kerstin af Jochnick said that the bank must remain vigilant on the matter of household debts when setting interest rates.
The Swedish Central Bank, also called the ‘Riksbank’, has taken a firm stance to limit the economic damage caused by high domestic debts.
“The Riksbank has discussed the risks linked to the high level of household debt in Sweden as it wants to avoid the consequences that many other countries have experienced as a result of high indebtedness and the falls in house prices. Once macro-prudential policy is up and running, it will be in a better position than monetary policy to manage these risks, as it offers tools that are more effective than the repo rate for these purposes,” af Jochnick said in today’s speech.
Many Swedish economists have grown concerned over the Krona’s strength in recent weeks. The high cost of the currency has negatively influenced Swedish exports that are already struggling to cope with the slump in demand from the Eurozone, Sweden’s biggest trading partner.
Finance Minister Anders Borg has called for the Central Bank to think about the possibility of implementing monetary easing measures in a bid to soften the Krona.
“We should continue to make sure that we behave, that we have good public finances and that we have a banking sector that’s stable, it’s the confidence in Sweden that’s reflected in how strong the Krona is,” af Jochnick told reporters. “We don’t think the Krona will strengthen that much but think the Krona will remain at around this level.”
The Swedish Krona to Euro exchange rate is currently trading at 0.1152
The Swedish Krona to US Dollar exchange rate is currently trading at 0.1549
The Swedish Krona to Pound Sterling exchange rate is currently trading at 0.0981
The Pound Sterling to Swedish Krona exchange rate is currently trading at 10.1995
The Euro to Swedish Krona exchange rate is currently trading at 8.6767
The US Dollar to Swedish Krona exchange rate is currently trading at 6.4448
These exchange rates were correct as of 14:40 pm
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