Sweden's Riksbank announced that it will exchange Sweden’s February 2025 EU budget contribution in the foreign exchange market, with a total amount of SEK 7,900 million. The stated rationale is to avoid unnecessarily large exchange-rate fluctuations linked to these transactions. The exchange is a technical operation with no monetary policy purpose. Any impact on banking system liquidity will be neutralised using FX swaps, and the Riksbank plans to repurchase the corresponding euro amount linearly in the foreign exchange market within two months.
Riksbank 2025-02-17
Sweden's Riksbank to exchange SEK 7,900 million EU budget payment and repurchase euros over two months
Sweden's Riksbank will exchange its February 2025 EU budget contribution of SEK 7,900 million in the foreign exchange market to prevent large exchange-rate fluctuations. This technical operation has no monetary policy purpose, and any liquidity impact will be neutralised using FX swaps. The Riksbank will repurchase the corresponding euro amount linearly over two months.