At its strongest level before infection.
The rate of exchange for kroner during corona infections is really high, and at worst, the price of one euro is more than 12 kroner.
This is good news for Norwegian exports, but it makes everything we import very expensive.
Back to the old state
But now the epidemic effect is going to leave the Norwegian kroner: on Thursday, the krone exchange rate returned to the level it was in the summer of 2019 compared to the euro.
Also against the dollar and the Swedish krone, the Norwegian krone has recently strengthened significantly and is now at a pre-epidemic level.
- $ 8.32 (up 10.63)
- Swedish kronor: 0.96 (peak 1.06)
Once entry restrictions for all practical purposes are removed, cross-border trade is to be normalized. Those traveling across the border will now also get the help of the Crone transfer rate.
Why is that happening now?
Recently, several things have happened that have strengthened the Crone exchange rate in general: Norges Bank has raised its core interest rate, while oil and gas prices have risen sharply.
According to DNP’s currency analyst Magne Astner, this is primarily about one thing:
– It is tempting to respond that it is the price of oil. What we saw last month was about interest rate expectations compared to other countries. Home interest rates are rising, and Norges Bank’s expectations are rising, but this is rising in many countries. It’s not about oil because there’s a lot of gas now, but it’s about rising commodity prices.
The krona is significantly stronger against the euro than the dollar, and Østnor believes it is about energy:
– The European Union is a pure energy importer, while the United States is increasingly self-sufficient. The Swedish kronor and the Norwegian kroner often end up in pairs, where there are rarely very big changes, he says.
– Extra to worry about
A strong crone is often about high risk appetite among investors.
– There is always a lot to worry about, especially from the point of view of an economist, there is something extra to worry about. The risk picture has changed, and it is not taken into account that inflation will continue. We find that the trends for this global machine are more closely linked than we have experienced in previous times. Then obstacles and shortcomings will move from place to place. One quickly thinks that it is temporary. One would think that the shortage of these semiconductors would be solved in a year and a half, but now everyone who does not have it has to make some other meaningful changes.
– Felleskjøpet Stopping the sale of fertilizer means that their income is now falling, but it means something for next year’s food prices. Higher energy prices are leading to an improvement in someone’s production, but it is known that there is a demand for this fertilizer for world trade, which the store says will continue next year.