Sweden govt calls for dialog on Riksbank FX interventions
STOCKHOLM: Sweden's government called on the central bank to consult with politicians before embarking on any concrete plans to intervene in the currency, as it's unclear how far-reaching its mandate for interventions is. "If they have concrete plans I think it's good to inform" politicians "and provide an opportunity for response," Financial Markets Minister Per Bolund said in an interview in Stockholm Wednesday.
"We have a tradition of trying to have a dialog when important decisions are made and I think it's important that we do that also in this situation."
A debate has engulfed Sweden about the scope for Riksbank krona intervention after the bank last month stepped up threats it may try to weaken the krona to boost inflation, which has trailed its 2 percent target for five years. The bank is digging deeper into its toolbox to revive inflation, after also cutting rates far below zero and unleashing an unprecedented bond purchasing program.