December 08, 2023 09:52 GMT
E150mln Sold In 9th Week, But No EU Payments
The Riksbank sold E150mln in its 9th week of FX hedging, but did not make any membership payments to the EU.
- The data suggests the Riksbank has been using EU membership payments as the primary mechanism for EU hedging, meaning the E150mln sold this week will have been sold in the open market - and appears to be the most sold on the open market in a single week since the operations began.
- In the (W/C 20/11 - 24/11), the average EURSEK rate was 11.42642 - the lowest rate seen in the first 9 weeks of FX hedging. This suggests the Riskbank's decision to hedge Euros in the open market in the latest week was not a profit-led decision (i.e. to take advantage of a weaker SEK).
- Sales of USD remain on track to be completed in the quickest possible time (4-months from W/C 25/9).
- The main question now is when they will decide to pause sales during in December (in light of lower liquidity).