Currency swap agreements
The Riksbank has currency swap agreements with the European Central Bank (ECB), Norges Bank and Danmarks Nationalbank. These agreements enable the Riksbank to borrow euros, Norwegian kroner and Danish kroner in exchange for Swedish kronor if the need should arise to supply liquidity in one of these currencies to the financial system in Sweden.
A currency swap agreement is an agreement to exchange two currencies for one another and then exchange them back according to predetermined terms and conditions.
The Riksbank's currency swap agreement with the ECB has been in force since 2007. The currency swap agreements with Norges Bank and Danmarks Nationalbank are part of a currency swap cooperation with these central banks that has been established in 2020 (Scandinavian central banks in new cooperation).
The Riksbank also had a currency swap agreement with the US Federal Reserve to exchange US dollars for Swedish kronor. The most recent currency swap agreement with the Federal Reserve expired in December 2021. Since then, the Riksbank may borrow dollars in exchange for US government securities under the Federal Reserve's standing repo facility FIMA.
Thanks for your feedback!
Your comment could not be sent, please try again later
Questions? Visit our FAQ on kundo.se (opens i new window).