The Swedish Debt Office will liquidate its position in Swedish krona against the euro
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STOCKHOLM, August 29 (Reuters) – The Swedish National Debt Office said on Monday that it would be gradually liquidate a strategic position in the Swedish krona against the euro following major shifts in the global economy since it began building its position in 2018.
He said in a statement that the changes had altered the terms of the position in terms of cost and risk, and that he would close the position gradually at a rhythm adapted to market conditions.
“In light of the great uncertainty regarding future developments, the Debt Office has now decided to liquidate the Swedish krona position,” he said.
“In our view, this presents a risk today without generating material benefits for Swedish taxpayers,” he added.
The 7 billion kroner ($654.00 million) position was built up gradually through forward exchange contracts in which the debt office bought kroner for euros.
Such buying of futures reduces central government debt costs if the krone appreciates.
($1 = 10.7034 Swedish crowns)
(Reporting by Anna Ringstrom, editing by Stine Jacobsen)
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