Rules and regulations for asset management

As of 1 January 2006, the Riksbank has a coherent regulatory framework for the whole of its asset management, a so-called financial risk policy.

The financial risk policy provides the overall framework for the risk the Riksbank is prepared to take in its management and, to some extent, for the methods for measuring and handling risk.

Each year, the Executive Board decides on the guidelines for asset management – the investment policy. Among other guidelines, this specifies the restrictions placed on the allocation of currencies and assets in the foreign exchange reserve, with the aim being that the Riksbank should always be able to fulfil its commitments. The investment policy also specifies an interval for the foreign exchange reserve’s interest rate risk.

On 19 May 2009, the Riksbank decided to temporarily reinforce the foreign exchange reserve by borrowing foreign currency from the Swedish National Debt Office. The management policy for borrowed foreign currency determines the framework within which the borrowed funds are to be managed.

The regulations for RIX and monetary policy instruments have a bearing on the management of the financial assets held by the Riksbank for monetary policy purposes.