Norges Bank plans to buy Norwegian krone. February plans revealed
Norges Bank has announced daily purchases of the national currency in February. The scale of operations will be lower than the previous month.
The Norwegian krone, although historically weak, is gaining against the zloty, dollar, and euro.
Fot. Adobe Stock, licencja standardowa
The central bank has announced its planned currency transactions for February. This concerns the purchase of Norwegian kroner on the market. The operations are carried out on business days and are intended to have a limited impact on the currency market.
Smaller Norwegian krone purchases in February
Norges Bank will buy 726 million NOK per day. In January, it was 776 million NOK per day. This means a month-on-month decrease in the scale of purchases. The information did not trigger a significant market reaction. The krone's exchange rate remained stable.
Since the beginning of the year, the Norwegian krone has strengthened. It has risen by 3.5% against the euro and gained almost 5.0% against the dollar. Economists point to the possible impact of these purchases on the exchange rate. However, they add that the unstable international situation and prevailing uncertainty in many parts of the world have a greater influence on the currency.
Since the beginning of the year, the Norwegian krone has strengthened. It has risen by 3.5% against the euro and gained almost 5.0% against the dollar. Economists point to the possible impact of these purchases on the exchange rate. However, they add that the unstable international situation and prevailing uncertainty in many parts of the world have a greater influence on the currency.
On the morning of January 30, the zloty was worth 2.72 NOK. The exchange rate has been falling since mid-December (2.84 NOK).Photo: Adobe Stock, standard license (illustrative photo)
Why is Norges Bank buying Norwegian krone?
These transactions are currency exchanges. They result from the fact that Norway receives oil revenues in various currencies. Part of the funds is used in the state budget. The remaining portion goes to the foreign reserves of the Oil Fund (Oljefondet).
Of the 726 million NOK per day, 600 million NOK is allocated to budget expenditures. Another 126 million NOK is intended to finance transfers to the state, such as dividends and interest. In 2026, a total of 30 billion NOK will go to the budget, related to the results for 2025.
Of the 726 million NOK per day, 600 million NOK is allocated to budget expenditures. Another 126 million NOK is intended to finance transfers to the state, such as dividends and interest. In 2026, a total of 30 billion NOK will go to the budget, related to the results for 2025.
Norges Bank emphasizes that the operations are planned in advance and are to be evenly distributed over time. They are not considered currency interventions. In the same period a year earlier, the bank was selling 300 million NOK per day. The aim then was to supply the Oil Fund with foreign currency.
How do you rate this article?