Foreign exchange market, exchange rate developments, and international reserves 2022
The króna depreciated by 2.1% in 2022, and turnover in the interbank foreign currency market increased by 6% year-on-year. The Central Bank traded in the market to mitigate exchange rate volatility as it deemed warranted. Although the Bank both bought and sold currency in 2022, its net foreign currency purchases for the year totalled 13.2 b.kr. Public health restrictions due to the COVID-19 pandemic were lifted at the end of February, which had a positive impact on the tourism sector. Tourism-generated export revenues increased over the course of the year and were back to the pre-pandemic level by early summer. Russia’s invasion of Ukraine and the ensuing uncertainty in global markets strongly affected developments in the domestic foreign exchange market in 2022. The pension funds continued buying significant amounts of foreign currency, and there were several large capital transactions by domestic and foreign entities during the year. At the year-end, the Bank’s international reserves totalled 837 b.kr., or 24% of GDP.
See the press release no. 3/2023 on Foreign exchange market, exchange rate developments, and international reserves 2022.
No. 3/2023
16 January 2023