Riksbank exchanges EU payments
Date
02/02/2015
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 two EU payments in February 2015. The total amount is SEK 7 590 million.
The Riksbank has on previous occasions exchanged EU payments to avoid unnecessarily large fluctuations in the exchange rate in connection with these transactions.
These exchanges do not have any monetary policy purpose. The effect on liquidity in the banking system is neutralised by means of FX-swaps. The Riksbank intends to repurchase the corresponding euro amount in the foreign exchange market within two months. This will be done by daily purchases of euro for Swedish kronor.
