The foreign currency reserve

The foreign currency reserve largely consists of securities issued in US dollars (USD) and euros (EUR), as these are the most important currencies when it comes to being able to provide liquidity to the financial system in a crisis.

However, to spread the risks, the Riksbank has chosen to have a small part of the currency reserve in British pounds (GBP), Australian dollars (AUD) and Canadian dollars (CAD). On 31 August 2018, the market value of the foreign currency reserve was SEK 471.8 billion.

Scope for spreading risks

As the currency reserve is valued in Swedish krona, its value is affected to a high degree by how the US dollar and euro perform against the krona. This is called the currency reserve's "foreign exchange exposure". However, the Riksbank also has liabilities in these currencies, which reduces its foreign exchange exposure. To further minimise the effects of exchange rate fluctuations, the Riksbank invests in assets in British pounds, Canadian dollars and Australian dollars. The Riksbank also converts some of the currency exposure in US dollars into Norwegian kroner (NOK) with the help of derivative instruments.

The value of the Riksbank's assets and liabilities in foreign currency is influenced by international interest rate developments. On 31 August 2018, the Riksbank's interest-rate sensitivity was 3.0, which means that, if interest rates abroad rise by one percentage point, the value of the Riksbank's net assets in foreign currency will fall by 3.0 per cent.

Breakdown of the gold and foreign currency reserve assets

31/8/2018 (Percent)

Note. Percentages as of 30 April 2018 stated in brackets. 

Foreign currency exposure for the net assets

31/8/2018 (Percent)

Note. Percentages as of 30 April 2018 stated in brackets.

Updated 28/11/2018