Confidence for the krone: Norwegian krone: Why Norway’s currency should appreciate against the euro | message

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by Thomas Strohm, Euro am Sonntag

Dhe Norges Bank could be the first major central bank to raise its key interest rate after the Corona crisis. In any case, at their December meeting, the Norwegians changed their projections for the future interest rate path, thereby promising an increase in the key interest rate, which is currently at zero percent, for the first half of 2022. That would be around six months earlier than the target in the September report. © www.de24.news

 The  Krone has already benefited from this and gained in value against the euro. And currency analysts see further appreciation potential for the currency.

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© www.de24.news

 The  country has come through the crisis relatively well so far. © www.de24.news

 The  Norges Bank expects economic performance to return to the pre-Corona level by the end of 2021. © www.de24.news

 The  economy received extensive support, for which the state also made use of the assets of the pension fund, which is fed by the country’s oil revenues.

© www.de24.news

 The  sovereign wealth fund only invests abroad, not in its own country. © www.de24.news

 The  sale of the pension fund therefore generated foreign currency income. © www.de24.news

 The ir dismantling, in turn, ultimately supported the crown. At the beginning of 2020, around 9.90 kroner had to be paid for one euro. In the midst of the Corona uncertainties in spring 2020, it was temporarily more than 12.50 kroner, at the turn of the year it was now around 10.50 kroner.

© www.de24.news

 The  Norwegian motto is considered to be sensitive to the economy and dependent on the oil price. According to experts, the forecast currency appreciation therefore depends on the economic recovery in Europe and worldwide. © www.de24.news

 The  development of the oil price is also linked to this: global demand for the raw material will increase with the economic upturn. At the same time, the oil-producing countries, which are coordinating within the framework of OPEC +, are likely to expand their reduced production only slowly overall.

Appreciation of the currency

By consensus, foreign exchange analysts expect that by the end of the current year only 10.20 kroner will have to be paid for one euro. But there are also experts among them who predict rates well below the mark of ten kroner per euro.

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Image sources: Oleksii / stock.adobe.com, Vladimir Wrangel / Shutterstock.com



[ source link ] https://www.finanzen.net/nachricht/devisen/zuversicht-fuer-die-krone-norwegische-krone-wieso-norwegens-devise-zum-euro-aufwerten-duerfte-9672655
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