Norges Bank keeps krone sales unchanged – E24

Norges Bank keeps krone sales unchanged – E24

In March, Norges Bank will sell NOK 350 million per day.

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Thus Norges Bank's krone sales remained at the same level in the first three months of the year.

There are only marginal effects on the krone exchange rate after the announcement.

The krone is sold (exchanged) to convert other currencies to an oil fund that invests abroad. It should not be confused with currency intervention, which means that the central bank buys or sells krone to influence the krone exchange rate.

Even if central bank sales of the krone over time are largely balanced by oil companies having to buy krone to pay taxes, central bank sales could still affect the krone exchange rate. This is due to volume and because the exchanges do not necessarily occur at the same time.

From buying to selling

For several years, Norges Bank purchased krone on behalf of the state, so that foreign currency oil revenues could be used in the state budget.

But since April 2022, the situation has reversed, when krone inflows exceeded the amount that was supposed to go to the state budget. Large sums of kroner from tax payments are now sold to oil companies every day.

As a rule, Norges Bank tried to facilitate krone transactions throughout the year, in order to avoid unnecessary disruptions in the currency market. But in the past year, unusually big changes have occurred.

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Dalila Awolowo

Dalila Awolowo

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