Share the article
twitter-iconcopy-link-iconprint-icon
share-icon

Nordic FX: volatility ahead?

The Nordic countries’ currencies are renowned for stability and low risk, but concerns are surfacing around the currencies of Norway and Sweden, nicknamed the 'nokkie' and the 'stocky'. Joy Macknight reports.
Share the article
twitter-iconcopy-link-iconprint-icon
share-icon

Managing different currencies adds some complexity to operations spanning the four largest Nordic economies, which are similar in business, legal and sociopolitical aspects. However, foreign exchange (FX) risk is lessened due to Finland’s use of the euro and the Danish krone’s close peg to the common currency.

The Danish currency keeps within an exchange rate band agreed by the country’s central bank, Danmarks Nationalbank, and the European Central Bank (ECB), and is the cornerstone of the country’s economic policy. “The central bank keeps a tight rein on the krone and will intervene if it gets too strong or weak,” says Jørn Sodborg, director, head of e-business and distribution at Jyske Bank.

To continue reading, join our community and benefit from

  • In-depth coverage across key markets
  • Comments from financial leaders and policymakers worldwide
  • Regional/country bank rankings and awards
Activate your free trial
Joy Macknight is the editor of The Banker. She joined the publication in 2015 as transaction banking and technology editor. Previously, she was features editor at Profit & Loss, editorial director at Treasury Today and editor at gtnews. She also worked as a staff writer on Banking Technology and IBM Computer Today, as well as a freelancer on Computer Weekly. She has a BSc from the University of Victoria, Canada.
Read more articles from this author