Riksbank exchanges EU payment
Date
01/12/2011
Sweden's EU membership entails monthly contributions to the EU's budget. These payments are made in Swedish kronor by the Swedish government and exchanged into euro in the foreign exchange market by a recipient central bank within the EU.
The Riksbank has decided to exchange the EU payment in December. The amount is SEK 3 574 million.
The Riksbank has on previous occasions ex-changed EU payments to avoid unnecessarily large fluctuations in the ex-change rate in connection with these transactions.
This exchange does not have any monetary policy purpose. The effect on liquidity in the banking sys-tem is neutralised by means of an FX-swap. The Riksbank intends to repurchase the corresponding euro amount in the foreign exchange market within two months of the exchange. This will be done by daily purchases of euro for Swedish kronor.
