Euro / Swedish krona - EUR/SEK

Whereas Sweden has in theory according the Maastricht Treaty to join the Euro area, and whereas its good economic health at the beginning of the XXIst century and the low inflation in the country could have allowed it, the Swedish krona (SEK) is still totally floating against all the other worldwide currencies and in particular against the Euro (EUR) because Sweden doesn’t want to participate at the ERM II system (Exchange Rate Mechanism II) that plan minimum and maximum fluctuation band of the EU member countries’ currencies in relation with the Euro.

Listing on the Forex at 8.5003 in December 2000, the EUR/SEK cross was bullish (and the Swedish krona appreciates) until the period previous to the effective entry into circulation of the Euro (beginning of 2002) with an exchange value EUR/SEK = 9.9631 in September 2001.

On a long period that goes until August 2008 (EUR/SEK = 9.3895), the fluctuations of the Swedish Krona against the Euro are done in a variation area of only +/- 7 to 8%, with a lower reached in September 2003 at EUR/SEK = 8.9038 and a higher (weaker value of the Swedish krona against the Euro in this period) reached in November 2005 at EUR/SEK = 9.6148.

However, from the Summer of 2008 and in the context of the worsening of the financial and stock-exchange crisis, the Euro will strongly increase in value against the Swedish krona and a higher point of the EUR/SEK = 11.7135 will be reached on March, 6th 2009, that represents an about 25% rise in six months.

A clear adjustment intervenes then and the EUR/SEK exchange rate begins to decrease by 10 to 12% in few months, listing at EUR/SEK = 10.3355 by mi-October 2009.