Monetary policy of Sweden
The Monetary policy of Sweden is decided by Sveriges Riksbank, the central bank of Sweden. The monetary policy is instrumental in determining how the Swedish currency, is valued. The main events in the monetary history of the Krona are:
- Introduction of the Krona, based on the gold standard on May 5, 1873. (1 kg of gold = 2480 Krona)
- The tie to gold is abolished on August 2, 1914.
- The tie to gold is de facto re-established in November 1922.
- The tie to gold is de jure re-established on April 1, 1924
- The tie to gold is abolished once more on September 27, 1931. Floating exchange rate.
- A tie to the British Pound is introduced in June 1933. (1 GBP = 19.40 SEK)
- Tied to the US Dollar on August 28, 1939. (1 USD = 4.20 SEK)
- A controlled appriciation of 14.3 percent, against all other currencies and gold on July 13, 1946. (1 USD = 3.60 SEK)
- A controlled depriciation of 30.5 percent against the USD on September 19, 1949. (1 USD = 5.17 SEK)
- Membership in the International Monetary Fund and party to the Bretton Woods Agreements on August 31, 1951.
- A controlled depriciation of 1.0 percent against gold and a 7.5 percent appreciation against the USD on December 21, 1971.
- A controlled depriciation of 5.0 percent against gold and a 5.6 percent appreciation against the USD on February 16, 1973.
- Membership in the European "currency snake" in March 1973.
- Adjustment of the exchange rates within the "snake"; a controlled 3 percent depriciation against the DEM on October 18, 1976.
- Adjustment of the exchange rates within the "snake"; a controlled 6 percent depriciation against the DEM on April 4, 1977.
- Sweden leaves the "snake". A controlled 10 percent depriciation against a trade based "currency basket" on August 29, 1977.
- A controlled depriciation of 10 percent against the "currency basket" on September 14, 1981.
- A controlled depriciation of 16 percent against the "currency basket" on October 8, 1982.
- A tie to the European Currency Unit is introduced unilaterally on May 17, 1991. (1 ECU = 7.40 SEK)
- Floating exchange rate on November 19, 1992
See also: Scandinavian Monetary Union
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