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Continuous fall of the Danish kroner - GOOD OR BAD?
Thursday, 26 July 2012
The Danish Krona continues to fall signifying the economy still
struggling to gain a head wind. A Danish Krone currently costs
aboutSkr1.13. This is the lowest price the currency has fetched against
its Swedish counter part since the Öresund Bridge opened in the 2000s.
One good thing here is a reverse trend where more Swedes will surely be
flooding into Denmark to do shopping according to media reports in
Sweden. The reverse is because in the past 10 years it had been more
Danes coming to Sweden to buy most including Swedish properties that
were more competitive then while Denmark saw its own house prices go
over the roof.
Therefore when the bridge was opened in 2000, the Danish krone had some what fluctuated around Skr1.13.
Analysts say it is the same ratio that prevailed in July this year. On
Wednesday, the cost of 1Dkr was Skr 1.13. The Danish krone has thus
dropped 5 percent from year-end against the Swedish krona and a massive
20 percent over the past three years.
The Danes now hope that the Swedes will take over the Oresund bridge
region and shop until they drop encouraged by the prospects to make
"Recognition of the strong Swedish krona has not yet fallen into place,
"says Karsten Karsten Längerich, director of consumer market in the
Oresund region to the paper, Sydsvenskan.
"There is an image of Copenhagen as an expensive place held by many
Swedes here. In the wake of the crisis in the Danish retail trade I
would argue that there are many bargains to be had in Denmark right
now, "says Karsten Längerich.
Not long ago
the Danish business daily, borsen reported that the Danes, not least
because of the increasingly expensive Swedish krona, are becoming less
likely to buy the Swedish summer. The trend now is "stagnant" because
in some some years until 2007 it was "explosive" that the Danes will
get on their bikes and move to Sweden in the summer.
Thus the Swedes who went to the Roskilde Festival earlier in July,
could rejoice in having a little bit more money left over for beer and
food than usual because of the favourable exchange rate.
In Skåne, southern Sweden, which is very close to Denmark, there are
some places with ATM machines where one can directly switch to the
Danish krone, reports Sydsvenskan as a tip to Swedish shoppers,
speaking of the fees that banks and money exchange companies are
by Scancomark.se Team
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