Monetary policy of Sweden

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The monetary policy of Sweden is decided by Sveriges Riksbank, the central bank of Sweden. The monetary policy is instrumental in determining how the Swedish currency is valued.

History

The main events in the monetary history of the Krona are:

Introduction of the Krona, based on the gold standard on May 5, 1873. (1 kg of gold = 2480 Kronor)
The tie to gold is abolished on August 2, 1914.
The tie to gold is de facto re-established in November 1922.
The tie to gold is de jure re-established on April 1, 1924
The tie to gold is abolished once more on September 27, 1931. Floating exchange rate.
A tie to the British pound is introduced in June 1933. (1 GBP = 19.40 SEK)
Tied to the US dollar on August 28, 1939. (1 USD = 4.20 SEK)
A controlled appreciation of 14.3%, against all other currencies and gold on July 13, 1946. (1 USD = 3.60 SEK)
A controlled depreciation of 30.5% against the USD on September 19, 1949. (1 USD = 5.17 SEK)
Membership of the International Monetary Fund and part of the Bretton Woods system on August 31, 1951.
A controlled depreciation of 1.0% against gold and a 7.5% appreciation against the USD on December 21, 1971.
A controlled depreciation of 5.0% against gold and a 5.6% appreciation against the USD on February 16, 1973.
Membership in the European "currency snake" in March 1973.
Adjustment of the exchange rates within the "snake"; a controlled 3% depreciation against the DEM on October 18, 1976.
Adjustment of the exchange rates within the "snake"; a controlled 6% depreciation against the DEM on April 4, 1977.
Sweden leaves the "snake". A controlled 10% depreciation against a trade based "currency basket" on August 29, 1977.
A controlled depreciation of 10% against the "currency basket" on September 14, 1981.
A controlled depreciation of 16% against the "currency basket" on October 8, 1982.
A tie to the European Currency Unit is introduced unilaterally on May 17, 1991. (1 ECU = 7.40 SEK)
Floating exchange rate on November 19, 1992.
A Swedish euro referendum is held on 2003, with 55.9 percent vote against membership of the eurozone.

1992

In late 1992 (September 14, Monday) the British pound began a steep decline that made it "leave" the Exchange Rate Mechanism on the Wednesday of that week. At the same time the Swedish currency began to decline; the first reaction from the central bank was to try to keep the current fixed exchange rates in place, and they set a target for their equivalent to the federal funds rate ("marginal rate") at 500%. The bank began to sell short-term government securities in large amounts but soon realized that market forces were strong, so they lowered their target rate, and let everyone sell what they wanted to sell, and the country saw a large selling of SEK, and SEK denominated papers. Between September 1992 and February 1993 the Swedish currency "TCW" index went from 125 to 100 (20% fall), while the British currency XBP index fell from 200 to 142 (29% fall).

References

Jonung, Lars "Från guldmyntfot till inflationsmål" [Ekonomisk debatt #1, 2000

External links

Central banks

Global

Global	Bank for International Settlements Basel Committee on Banking Supervision Financial Stability Board

By continent

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Americas	Central Bank of Argentina Central Bank of Aruba Central Bank of The Bahamas Central Bank of Barbados Bermuda Monetary Authority Central Bank of Brazil Bank of Canada Central Bank of Chile Bank of the Republic (Colombia) Central Bank of Cuba Central Bank of Curaçao and Sint Maarten Eastern Caribbean Central Bank Cayman Islands Monetary Authority Central Bank of Ecuador Bank of Guatemala Bank of the Republic of Haiti Central Bank of Honduras Bank of Jamaica Bank of Mexico Central Bank of Nicaragua Central Reserve Bank of Peru Central Bank of Suriname Central Bank of Trinidad and Tobago Federal Reserve System (United States) Central Bank of Uruguay Central Bank of Venezuela
Asia	Da Afghanistan Bank Central Bank of Bahrain Bangladesh Bank Royal Monetary Authority of Bhutan Brunei Currency and Monetary Board Autoriti Monetari Brunei Darussalam National Bank of Cambodia People's Bank of China Hong Kong Monetary Authority Reserve Bank of India Bank Indonesia Central Bank of the Islamic Republic of Iran Central Bank of Iraq Bank of Israel Bank of Japan Central Bank of Jordan National Bank of Kazakhstan National Bank of the Kyrgyz Republic Bank of Korea Central Bank of the Democratic People's Republic of Korea Central Bank of Kuwait Banque du Liban Monetary Authority of Macao Bank Negara Malaysia Maldives Monetary Authority Bank of Mongolia Central Bank of Myanmar Nepal Rastra Bank Central Bank of Oman State Bank of Pakistan Palestine Monetary Authority Bangko Sentral ng Pilipinas Qatar Central Bank Saudi Arabian Monetary Agency Monetary Authority of Singapore Central Bank of Sri Lanka Central Bank of Syria Central Bank of the Republic of China (Taiwan) Bank of Thailand Central Bank of Turkmenistan Central Bank of the United Arab Emirates Central Bank of Uzbekistan State Bank of Vietnam Central Bank of Yemen
Europe	European Central Bank (Eurosystem) National Bank of the Republic of Abkhazia Bank of Albania Central Bank of Armenia National Bank of Austria Central Bank of Azerbaijan National Bank of the Republic of Belarus National Bank of Belgium Central Bank of Bosnia and Herzegovina Bulgarian National Bank Croatian National Bank Central Bank of Cyprus Czech National Bank Danmarks Nationalbank (Denmark) Deutsche Bundesbank (Germany) Bank of England Bank of Estonia Bank of Finland Banque de France National Bank of Georgia Bank of Greece Hungarian National Bank Central Bank of Iceland Central Bank of Ireland Banca d'Italia Central Bank of Kosovo Bank of Latvia Bank of Lithuania Central Bank of Luxembourg National Bank of the Republic of Macedonia Central Bank of Malta National Bank of Moldova Central Bank of Montenegro De Nederlandsche Bank Norges Bank Central Bank of the Turkish Republic of Northern Cyprus National Bank of Poland Banco de Portugal National Bank of Romania Central Bank of Russia National Bank of Serbia National Bank of Slovakia Bank of Slovenia Gosbank (Soviet Union) Bank of Spain Swedish National Bank Swiss National Bank Central Bank of the Republic of Turkey National Bank of Ukraine
Oceania	Reserve Bank of Australia Reserve Bank of Fiji Reserve Bank of New Zealand Bank of Papua New Guinea Central Bank of Samoa Central Bank of Solomon Islands National Reserve Bank of Tonga

Policies and implementation

Policies	Capital requirement Contractionary monetary policy Expansionary monetary policy Basel II Basel III Basel 4
Implementation	Capital control Discount rate Interest rates Money creation Open market operation Sovereign wealth fund

Bretton Woods system
International Monetary Fund World Bank Group International Bank for Reconstruction and Development International Centre for Settlement of Investment Disputes International Development Association International Finance Corporation Multilateral Investment Guarantee Agency

Lists
List of central banks Central banks and currencies of Africa Central banks and currencies of the Caribbean Central banks and currencies of Central America and South America

Names in italics indicate non-sovereign (dependent) territories, former countries, or states with limited recognition

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Monetary policy of Sweden

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1992

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