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CURRENCY

Krona rises after Riksbank interest rate statement

A statement from the Swedish central bank flagging further interest rate rises has caused the kronor to rise substantially in value, meaning Swedes travelling abroad over the Midsummer weekend are likely to feel a bit better off.

The Riksbank’s decision on Wednesday to raise rates by 0.25 percentage points to 3.5 percent was expected. But the bank’s prediction that further rate rises were likely took the currency traders by surprise.

The krona rose 12 öre against the euro, and stood at 9.25 kronor on Thursday at 2pm. The Swedish currency rose 11 öre against the dollar on Wednesday, falling back by one öre on Thursday. The krona now stands at 13.7 to the pound and 6.9 to the dollar.

“We haven’t seen such big moves in the krona since the Enron crash of 2001, when the krona fell drastically,” said Marcus Hallberg, analyst at Handelsbanken.

Hallberg said he thought the krona would keep strengthening and would reach 9.15 against the euro by the autumn.

Joakim Eriksson, marketing director at tour operator My Travel, said the rise of the krona was good for people living in Sweden who plan to travel abroad.

“It means that travellers will have more spending money in tourist destinations. The value of the krona has become an increasingly important factor when tourists choose where to spend their summer holidays.”

CURRENCY

Swedes don’t want to join the euro – now or ever

A large majority of Swedes don’t want to join the eurozone and most predict the country will never adopt the EU’s common currency‚ according to a new survey.

Swedes don't want to join the euro – now or ever
Euros? Nej tack! Photo: Jens Meyer/AP

Sixty-eight percent of Swedes are opposed to replacing the krona with the euro, a new Eurobarometer poll shows. 

The survey was carried out in the seven countries that are not yet part of the single currency but have pledged to join at some point. These are: Czech Republic, Bulgaria, Poland, Croatia, Hungary, Romania and Sweden. 

The two other countries outside the eurozone, Denmark and the UK, have each secured exemptions and are not obliged to join, as Europaportalen reports

Thirty percent of respondents in Sweden were “strongly against” adopting the euro. A further 38 percent were “rather against”. Only four percent were strongly in favour of introducing the euro. 

Czechs were even more strongly opposed than Swedes, with 70 percent keen to give the euro a wide berth. 

Poles also want to stay out, whereas Bulgarians, Croats, Hungarians and Romanians would prefer to scrap their domestic currencies. Support for the euro was strongest in Romania, where 66 percent of respondents favour the euro over the leu. 

Despite their overall opposition, a majority of respondents in the seven countries polled said the euro had made a positive impact in the countries that had adopted it. 

Even thought these countries are formally required to join, in practice the decision remains in national hands. And 55 percent of Swedes don’t think the euro will ever become their currency.