The Swedish Krona is the official currency of Sweden. Its currency code is SEK, and its symbol is kr. The Sveriges Riksbank, the central bank of Sweden, is responsible for issuing and regulating the Swedish Krona.
Exchange rate regime:Floating
Sweden's Monetary Policy
The primary objective of Sweden's monetary policy, as implemented by the Sveriges Riksbank, is to maintain price stability. The Riksbank has an inflation target, aiming to keep inflation around 2 percent per year.
The Riksbank uses the repo (repurchase agreement) rate, the interest rate at which it lends to commercial banks, as its primary tool to control inflation. Changes in the repo rate influence other interest rates in the economy, affecting overall economic activity and price levels.
Key Features of SEK
The Swedish Krona is divided into 100 öre. However, öre coins have not been in circulation since 2010. Coins come in denominations of 1, 2, 5, and 10 kronor, while banknotes are issued in denominations of 20, 50, 100, 200, 500, and 1000 kronor.
Swedish Krona banknotes and coins feature a variety of designs, including images of notable Swedish personalities, landscapes, and cultural symbols. For instance, the 200-krona note features a depiction of renowned film director Ingmar Bergman.
Financial experts often regard the Swedish Krona as a relatively stable currency, influenced by both domestic and international economic conditions. Domestically, factors such as inflation rates, economic growth, and the central bank's monetary policy decisions can affect the krona. Internationally, as a small, open economy heavily reliant on exports, Sweden is also influenced by global economic trends and trade conditions.
However, the SEK can exhibit volatility, driven by factors such as changes in global risk sentiment and shifts in monetary policy outlook. It's also sensitive to economic indicators and policy decisions from major economies, especially the Eurozone, which is Sweden's largest trading partner.
The Riksbank's negative interest rate policy, in place for several years until 2019, was a significant point of interest for analysts. Some experts believe that negative rates have helped stimulate the Swedish economy, while others are concerned about potential long-term consequences, such as asset bubbles and weakened financial stability.
The Sveriges Riksbank is responsible for the regulation of the Swedish Krona. It controls the issuance of new notes and coins, sets monetary policy, and oversees the country's payment systems to ensure their efficiency and stability.
Key considerations to bear in mind
Payment instructions should contain the beneficiary's IBAN, name, and address.
Payment Processing Time
The time taken for a payment to reach the recipient's bank account can vary. Domestic transfers within Sweden are typically processed quickly, while international transfers may take a few business days. Consider the processing time when planning your payment to ensure timely delivery. The iBanFirst Payment Tracker can help you track those payments, and ensure a smooth and efficient payment experience.
Fees and Charges
Banks and financial institutions may apply fees and charges when processing international payments. These fees can vary, so it is advisable to check with your bank to understand the charges associated with your transaction. Check out iBanFirst’s Savings Calculator to estimate how much you could save on your next international payment.
New Year's Day
National Day of Sweden
All Saints' Day
iBanFirst S.A. is duly authorised and regulated by the National Bank of Belgium (under CBE number 0849.872.824) as a payment institution. It is a direct member of the SWIFT network and is certified to make payments throughout the SEPA zone. As a payment institution, iBanFirst S.A. only offers hedging solutions (forward, flexible forward and dynamic forward) connected to underlying payment transactions. iBanFirst S.A. does not offer options or any other financial instruments for investment or speculative purposes.