for ten days, the Swedish krona has weakened by nearly twenty percent against the us dollar. On the 9th of march was a dollar worth 9:35 kr. However, with the coronavirusets an iron grip on the financial markets, turning the players into the majors. The course was in the morning rising to 10 to 45 dollars.
Many people want to enter through the narrow dollardörren at the same time as the major central banks are doing everything in their power to market, " says economist Thomas Olofsson, using the experience of the ministry of finance and the Swedish national debt office.
the minor currencies are the crunch of the economic times, it is not a new thing. During the financial crisis of 2008-2009, dropped by the crown nearly 40 per cent of the value of the. A lot of people choose to take refuge in the priority of the currencies in uncertain situations, says Thomas Olofsson.
" at the same time, there is no simple explanation for this, but there are a lot of factors that come into play. Basically, it's all about the people in the dollarmarknaden, and the fact that the securities are sold to obtain liquidity. This is not kronmarknaden the most interesting to me.
" we don't know. The only thing you can be sure that it's going to be a big movement, and it is difficult to ensure that the turbulence is beneficial to the English crown.
In the normal case värdefall on the crown was associated with a stronger market for exports as the goods become less expensive in other countries, where the crown will be worth less. However, since there is a great deal of uncertainty about the extent to which the output can be up and running during a crisis, it is not clear whether the effect is particularly large", says Thomas Olofsson.
" It is clear that a weaker exchange rate favours the export market. However, because there is a problem in their supply chains around the world, at the same time, as the companies may find it difficult to keep the production at the time, and the demand disappears, so will the incentive effect of a weaker exchange rate are weaker than normal shocks.
the major central banks to take action. For example, said the us central bank, the Fed, that it is greatly increasing the size of the over-night lending to prevent liquidity shortages in the banking system. Sweden's central bank has decided to offer further loans to the banks, and the purchase of securities for up to $ 300 million.
It is reported that much of the stock market and interest rates at the moment, however, it is important not to lose sight of what's happening under the hood in the financial markets. The market is very stressed out now. The banks need liquidity, which means that you want to be in the company of other debt securities. It is necessary, in particular, targeted measures from the central banks, in order to ensure the proper functioning of the markets.
”the Situation on the market is extraordinary for the Norwegian krone, and the exchange rate fluctuations having been one of the greatest of all time”
it has been even better. In ten days, the value of the Norwegian krone has fallen by around 27 per cent vis-à-vis the us dollar. The situation has escalated to the point that the central bank is considering purchases of the Norwegian krone in the forex market, reports news agency TT.
In a statement in writing of the central bank that ”the situation on the market is extraordinary for the Norwegian krone, and the exchange rate fluctuations having been one of the greatest of all time”. A big reason for that is that the price of oil has fallen sharply. So far this year, the price of oil has fallen by 60 per cent.
" It is clear that the oil is of a very poor stress factor of five. However, where we are, we are, as the tour is, " says Thomas Olofsson.
for more information, see the stockholm stock exchange rose.