Manageable risks in the changeover process if Sweden adopts the euro 2006

A direct changeover in 2006, whereby banknotes and coins are replaced at the same time as Sweden introduces the euro as electronic transaction currency, would entail that the risks connected with the changeover work by the financial system would be manageable and the changeover costs lower than in a step-by-step transition. This is one of the conclusions in "The Euro in the Swedish Financial Sector - Progress Report 9", which is published today. The report contains a summary and update of financial studies made earlier by the financial sector regarding necessary changes and lead times for adoption of the euro.

"If the result of the referendum is a 'yes' vote, the current timetable for a direct changeover gives us no time margin in the change work," points out First Deputy Governor Eva Srejber. "However, it allows the financial sector the necessary time for tests, which lowers the practical risks connected with a changeover to the euro."

Representatives of the financial sector give their perspectives as to how Swedish membership of the Eurosystem could affect the structure and competitive conditions in the Swedish financial system.

The report also describes use of the euro in Sweden. One conclusion is that the position of the krona in Sweden has not been tangibly affected since the creation of the monetary union in 1999. However, some continued increase in use of the euro can be noted, primarily in that the euro has partly replaced the krona as payment currency in connection with Swedish exports to the euro area.

The report is available as a PDF-file on the Riksbank's website under the heading Publications/EMU. It can also be ordered by e-mail, forradet@riksbank.se, fax +46-8-7870526 or telephone +46-8-7870100.

An English version of the report will be available in a couple of weeks' time.

 

Contact: Johan Östberg, +46-8-7870167, or Johan Pontén, +46-8-7870162