🏦💱 Sweden Currency Reserves Relatively Small: Cable FX Macro
- Rosbel Durán
- Sep 22, 2023
- 1 min read
This week, the Riksbank released its monetary policy decision and announced that it would hedge part of its FX reserves. The central bank decided to sell USD8b and EUR2b for SEK starting next week, the program is set to last six months
I think the Riksbank's desired effect is to see the krona strengthening on this, a measure of SEK REER has declined to record lows in recent weeks. Despite the announcement, the SEK traded lower vs the euro and the dollar
Given the size of FX markets, the magnitude of the program might not be enough to change the course of SEK rates
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