| Central banks and sovereign-wealth funds have stepped up their buying of Scandinavian currencies for their reserves, as they seek to diversify away from dollars and euros. In recent months, central banks and sovereign-wealth funds from Poland, Russia, Indonesia and several East Asian countries, among others, have increased purchases of the Norwegian krone and Swedish krona.
Sovereign buyers also are likely to be attracted by the strong state of both countries' public finances, said Alan Ruskin, global head of G-10 foreign-exchange strategy at Deutsche Bank in New York. Norway has a $740 billion sovereign-wealth fund, which helps make its fiscal accounts "extraordinary by almost any measure," while Sweden's is also "in very good shape," he said...............................................Full Article: Source
|