Reservation Against Riksbank Decision to Increase Its Foreign Exchange Reserves

Reservation by Deputy Governors Karolina Ekholm and Lars E.O. Svensson Against Riksbank Decision to Increase Its Foreign Exchange Reserves, December 6, 2012. English Swedish.  Riksbank announcementEditorial by Peter Wolodarski, Dagens Nyheter, December 16, 2012 (Swedish).

Vi reserverar oss mot beslutet att förstärka valutareserven med motsvarande 100 miljarder kronor, eftersom vi anser att ett bättre alternativ är att ingå ett avtal med Riksgäldskontoret om att valutareserven ska återställas inom 10 bankdagar efter beslut om att ta den i anspråk för likviditetsstöd. Ett sådant avtal har fördelen att skattebetalarna slipper betala för bankernas riskfyllda upplåning i utländsk valuta.

We enter a reservation against the decision to reinforce the foreign exchange reserves by the equivalent of SEK 100 billion, as we consider a better alternative would be to enter into an agreement with the Swedish National Debt Office that the foreign exchange reserves will be restored within 10 banking days after a decision has been made to use the reserves for liquidity assistance. Such an agreement would have the advantage that the taxpayers would not need to pay for the banks’ risky borrowing in foreign currencies.

 

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