1789 - The Swedish National Debt Office is established

The Swedish National Debt Office was created to manage sovereign debt and fund the war with Russia. The Swedish National Debt Office issued bonds against interest, which rapidly started to be used as banknotes.

After Gustav III seized power, he forced the adoption of the silver standard, making it possible to redeem money for silver. The Riksbank opposed this, but the king promised that he would leave the bank in peace in return for its consent.

In 1778, Gustav III started a war with Russia. Funding this required a great amount of money. But, as he had promised not to interfere with the Riksbank, he was unable to simply tell it to print more money. Instead, the Swedish National Debt Office was created.

The issuing of banknotes by the Swedish National Debt Office caused a lot of trouble. Over the years 1789–1802, the office issued a large number of banknotes. Instead of one currency, we now had two: riksdaler riksgälds and riksdaler banco. This would have dramatic consequences, leading to the murder of Gustav III.