Swe­den govt calls for dia­log on Riks­bank FX in­ter­ven­tions

The Pak Banker - - MARKETS/SPORTS -

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.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.