The Swedish Krona continues
to break record in strength
The Swedish currency, the Swedish Krona is now stronger than it was
when the fixed exchange rate was abandoned. It has now strengthened
against all of the world's major currencies in the past year.
On Wednesday the Kix-index, the index from the Swedish National
Institute for Economic Research (NIER) - Krona index, KIX
yesterday stood at 99.80 and on Friday it was 99.81. This means
that the Krona is now 0.2 percent stronger than it was when the
Riksbank, he central bank stopped pegging the Krona on 19
November 1992, according to reports on Swedish business daily, Dagens
After the Swedish currency was allowed to float, it weakened rapidly by
about 25 percent. The weakening helped lift Sweden out of the crisis in
the early 1990s.
During the 20 years that followed the pattern was usually that the
krona weakened when the economy deteriorated and during periods of
financial turmoil. Judging by Sweden's current account surplus, which
has been around 6-7 percent of GDP in the past 15 years, the Swedish
currency has been systematically undervalued, writes the paper.
The weakest time for the Krona was in early March 2009, when the
financial crisis was at its worst. Kix index was recorded when to 135.
The Krona was thus 35 per cent weaker than when it began to float.
Since then, the Krona gradually gained ground. Sweden, with stable
public finances and balanced budget, in the aftermath of the crisis has
seen itself separated from the outside world. To have an AAA rating
with a stable outlook by all major rating agencies is rare today and a
quality that Sweden shares with only eight countries, Dagens Industi
In the past year, the krona has been the strongest of all the world's
major currencies, according to news agency Bloomberg data reports
by Scancomark.com Team
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