Published: 8 Apr at 1 PM Tags: Euro, America, Eurozone, USA, Norway, Sweden, Switzerland,
Although some industry experts have expressed concern that the Kronaâ€™s newfound strength will make Sweden
less competitive than its major trading partners, others have argued that the currencyâ€™s rise is not placing the nationâ€™s economic growth in danger.
As the financial crisis in the Eurozone has bounced from issue to issue the Krona has attracted investors looking for a safer asset. The Krona has also benefited from projections which outline the Swedish economy rebounding, as it recovers from a decline in exports which saw growth ease from 3.7 per cent to just 0.8 per cent in 2012.
Both Swedenâ€™s Prime Minister Fredrick Reindfeldt and the Governor of the nationâ€™s central bank have adopted a non-interventionist stance when it comes to the exchange rate, setting them apart from the leaders of Switzerland
Now the head of a major Swedish state-owned export credit provider has argued that the Kronaâ€™s strength will aid the nationâ€™s export industry in the long term.
Peter Yngwe, who takes the same stance as Reindfeldt and Riksbank Governor Stefan Ingves regarding the exchange rate, was recently quoted as saying: â€˜The Swedish export industry is good at being effective and streamlining and in the long term thatâ€™s the right way to go. In the short term itâ€™s, of course, tough with a strengthening Korna. [But] the Krona is starting to return to a level where it was before, so fundamentals support that itâ€™s about at the right level.â€™
When asked about companies like Svenska Cellulosa AB, which has argued that competitiveness is being lost because of the Kronaâ€™s strength, Yngwe did acknowledge that various industries may be affected differently. He commented: â€˜Of course, those companies more focused on raw materials, forestry and mining are affected a lot by this, but the processing industry not as much.â€™
In the last year the Krona has gained by roughly 5 per cent against the Euro.
It is currently trading in the region of 8.3504 Krona per Euro.
As of Monday, 8th April 2013, the Pound Sterling currency rates mentioned within this news item were as follows:
GBP EUR exchange rate was 1.1722, GBP USD exchange rate was 1.5259, GBP NOK exchange rate was 8.7554, and GBP CHF exchange rate was 1.4267.