Sweden's Riksbank has kept the strategic allocation of its gold and foreign exchange reserves unchanged for 2026 and will maintain its current currency hedging. The central bank judged that, despite large exchange-rate fluctuations in 2025, the existing portfolio continues to balance crisis preparedness with low risk and sufficient return, while the hedges reduce balance-sheet currency risk and have mitigated the earnings impact of a stronger Swedish krona. The reserves total SEK 584 billion and are held to provide liquidity support (including to banks operating in Sweden) and enable foreign exchange market intervention, while generating returns to fund the Riksbank’s operations. The foreign exchange reserve assets remain allocated 70% to USD, 17.5% to EUR, 5% to GBP, 5% to AUD and 2.5% to NOK, with EUR holdings mainly German bonds alongside French, Spanish and Italian bonds; the gold holding is unchanged at 125.7 tonnes and the modified duration is set at 4 per currency. Currency hedging remains at USD 8 billion and EUR 2 billion via foreign exchange swaps, leaving just under a quarter of the foreign exchange reserves hedged; the decision also sets counterparty and settlement limits for hedging, a tactical mandate for limited deviations from the strategic allocation, and monthly rebalancing. The decision applies from 1 January 2026 and replaces the previous strategic allocation decision, with no implementation actions required given the allocation is unchanged from 2025.

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