Foreign exchange market Sweden is a major player in the international foreign exchange market. The currency of Sweden, Swedish krona is the 8th most traded currency in all leading foreign exchange markets of the world.
According to a study on the foreign exchange market, done in April 2004, the Swedish krona contributes 2.3 percent share of the total daily transaction of foreign exchange in the global financial market. The foreign exchange market of Sweden is the largest financial market in the world, where the average daily transaction amounts to US$2.5 trillion.
Since the month of November in 1992, the Sweden Government has taken up the monetary policies of managed float regime in Sweden. The currency exchange rate of the Swedish krona largely depends on the monetary policies that are taken by the government. The Sveriges Riksbank is the central bank of Sweden that controls the monetary flow of the country and also regulates the foreign exchange market of Sweden.
Apart from the economic policies and regulations adopted by the central banks and governments, the exchange rate of a currency also depends on the amount at which the currency is traded in the forex market and simultaneously on the supply of that currency. According to the simple law of economics, the more the demand for a currency in the foreign exchange market and the less the supply of that currency in the circulation, the more valuable it is in the forex market. Over the passage of time Swedish krona has emerged as one of the most widely traded currencies of the world.
The current exchange rates of Swedish krona with other currencies of the world are as follows:
|New Zealand Dollar||0.2059|
|Hong Kong Dollar||1.1729|