With asset purchases for monetary policy purposes, the Riksbank took over some of the financial risks that private operators did not want to, or could not, take because of the uncertainty prevailing during the coronavirus pandemic. The Riksbank's assessment is that the asset purchases have supported the Swedish economy and have counteracted the negative effects that arose in the wake of the pandemic.
This year, market interest rates have risen rapidly, which means that the value of the Riksbank's securities holdings falls, and the Riksbank is therefore expected to make financial losses. However, the aim of the Riksbank's assets purchases was not to generate profits for the Riksbank. The purpose of the purchases was the broad and positive monetary policy effects on Sweden's economy.
Although the Riksbank's monetary policy capacity need not be affected by a large reported loss, there is reason to strive to rebuild and strengthen the Riksbank's capital in the future. Capital is not only a buffer against possible losses, but also strengthens the Riksbank's financial independence and the conditions to remain self-financed. The proposal for a new Sveriges Riksbank Act is based on having a target level for the Riksbank's own capital, precisely for that reason. The Riksbank's capital needs to contribute both to the conditions for long-term self-financing and to the ability to withstand the future losses that may arise when the Riksbank carries out its tasks. See Kjellberg & Vestin (2019), Appendix 2 of Sveriges riksbank (2019), Sveriges riksbank (2021a) and Sveriges riksbank (2022d).