Riksbank exchanges EU payment

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 February 2013. The amount is SEK 3 527 million.

The Riksbank has on previous occasions exchanged EU payments to avoid unnecessarily large fluctuations in the exchange rate in connection with these transactions.

This exchange does not have any monetary policy purpose. The effect on liquidity in the banking system 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.

Per Kvarnström, Division for Market Analysis and Operations,  tel. +46 8 696 6816

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The Riksbank is Sweden's central bank and an authority under the Riksdag, the Swedish parliament. The Riksbank is responsible for monetary policy with the objective to maintain price stability. The bank has also been given the task to promote a safe and efficient payment system.