Changes in the routine for EU payments

In accordance with the European Commission's new rules and regulations (no 1997/2002, of 8 Nov 2002), payments to member states shall be made in euro as from 1 January 2003. As a rule, the Commission's payments to Sweden were previously made in Swedish kronor. This change means that the Riksbank, as intermediary for payments for the European Commission, will henceforth be required to exchange incoming EU payments in euro for Swedish kronor. These transactions have no monetary policy significance, and the Riksbank will act solely as an intermediary.

The Executive Board of the Riksbank has decided that these transactions should normally be performed by selling the incoming euro amount in the market without delay. Any deviation from this procedure will be announced in a press release.

The new routine will be implemented with immediate effect. An incoming EU payment to the Swedish Board of Agriculture will therefore be exchanged for Swedish kronor. As the Riksbank has purchased euro since the beginning of the year to restore the level of its foreign currency reserves (see press release from 2 January 2003), only a part (approximately EUR 250 million) of the incoming EU payment will therefore be sold in the market. As a consequence of this, the Riksbank will be discontinuing its daily morning purchases.

 

Further information can be obtained from the Market Operations Department:
Magnus Vesterlund, Head of Division, tel. +46-8-696 68 11
Kjell Nordin, Adviser, tel. +46-8-696 68 04
Johan Moeschlin, Manager of Market Operations, tel. +46-8-696 68 14.