Norges Bank announced on Tuesday that the central bank will sell foreign currency equivalent to 250 million per day in connection with the sale to the fund in October. It means that money is being purchased.
Norges Bank has confirmed to E24 that it is the first time it happens.
– 250 million per day in itself is not large enough to enable it will have a direct effect on the crown, but it is obviously a positive signal that Norges Bank is on the buyer side. We are already the market interprets the positive, says chief strategist Erica Blomgren SEB to the site.
“The central bank has long alternated parts of the crown revenue currency because oil revenues in foreign currencies have been lower than transfers to the Government Pension Fund Global . now the picture has improved. revenues from the petroleum sector is declining and the use of oil revenues over the budget has increased. then arises a need to switch part of foreign currency earnings into Norwegian kroner to cover the budget deficit. This need will become progressively larger in the years ahead, “writes DNB Markets comments.
The krone appreciated and widely. In minutes were key currencies 0.6-0.8 percent cheaper.
Now the dollar costs 6.40 million, while the euro is in 8.11. Swedish Crown is as low as 0.88 million.
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