The Riksbank is reducing the foreign exchange reserve and upgrading the terms and conditions for Emergency Liquidity Assistance
The Riksbank has a gold and foreign exchange (FX) reserve to be able to perform its monetary policy and financial stability remit. This involves, among other things, the Riksbank having a contingency plan for the provision of liquidity in foreign currency to the financial system, including via Emergency Liquidity Assistance (ELA). The contingency need is crucial when it comes to assessing the necessary size of the gold and FX reserve. As a result of changes in, for example, banks’ balance sheets and Nordea’s relocation to Finland, this contingency need is now deemed to have decreased somewhat.