Norway central bank mulls stepping in to prop up falling krona

The central bank of Norway said Thursday it was considering intervening to stop the fall of the Norwegian krone, which is taking a beating from the economic fallout of the new coronavirus.

Norway central bank mulls stepping in to prop up falling krona
The headquarters of Norway's central bank in Oslo. Photo: Mahlum/Wikimedia Commons
Faced with the risk of recession and a sharp drop in the price of oil, of which Norway is Western Europe's largest producer, the Norwegian krone is buckling under.
Since the beginning of the year, when the currency was already weakened, the dollar has appreciated against the krone by more than 20 percent and the euro by almost 18 percent.
The drop intensified on Wednesday and according to business news site the currency had never weakened more in a day since the country abandoned its fixed exchange rate regime in 1992.
“In recent days, there has been an extraordinary situation in the market for Norwegian kroner,” Norges Bank, the country's central bank, said in a statement.
“Against this background Norges Bank is continuously considering whether there is a need to intervene in the market by purchasing Norwegian kroner,” it said.

Member comments

  1. Sorry but where did you get the percentages, 20% worse against the $ and 18% against the €, since Jan?
    March 6th 2020 – 9.261 to $ 19.03.20 – 11.4031 difference 23% in two weeks.
    Same dates – 10.4983 to € 12.3165 17%
    Taken from Norges-bank valutakurser

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Norway central bank deputy denied security clearance over Chinese wife

The deputy governor of Norway's central bank resigned on Friday after he was denied security clearance because he is married to a Chinese citizen, the bank said.

Norway central bank deputy denied security clearance over Chinese wife
Illustration photo: Drahomír Posteby-Mach on Unsplash

“The Norwegian Civil Security Clearance Authority informs me that the reason that I will not receive a renewed security clearance is that my wife is a Chinese citizen and resides in China, where I support her financially,” Jon Nicolaisen said in a statement from the bank.

“At the same time, they have determined that there are no circumstances regarding me personally that give rise to doubt about my suitability for obtaining a security clearance, but that this does not carry sufficient weight. I have now had to take the consequences of this,” he added.

As deputy governor, Nicolaisen had special responsibility for following up the bank's task of managing Norway's sovereign wealth fund, the world's biggest valued at more than 1 trillion euros.

According to the bank, Nicolaisen and his wife have been married since 2010.

He was appointed to the job in 2014, and his position was renewed in April 2020.

Diplomatic relations between Norway and China also went into a long deep freeze after the Nobel Peace Prize was awarded to Chinese dissident Liu Xiaobo in 2010. Ties were normalised in 2017.

READ ALSO: Norway oil fund loses 18 billion euros in first half of 2020