1. Sweden’s central bank

2. Introduction Presentation by Johan Grelsson All information and numbers are collected from The Central Bank of Sweden’s homepage. www.riksbank.se All the information is also available in English on the homepage. You can switch language in the top right corner. There are some small differences between the Swedish and the English version but the main message is the same.

3. Brief information Considered to be the oldest central bank in the world, founded in year 1668. Got monopoly on Swedish coins and bills in the year 1904. Became independent in the year 1999 and it’s independent position is stated in the Swedish law.

4. Objectives In the Swedish law, it says that the central bank shall maintain “a stable value of the money” and the central bank has interpreted that the inflation should be 2 % yearly. The motive behind the 2 % is that a low and stable inflation generates stable and favourable conditions for economic growth.

5. Key instruments Firstly the Riksbank provides standing facilities that enable banks to borrow or deposit funds overnight at the Bank. Secondly the Riksbank uses the repo rate as its key signaling rate. With this rate the Riksbank indicates what the overnight rate will be one week ahead.

6. Key instruments Thirdly the Riksbank conducts fine-tuning operations on a daily basis with the aim of stabilizing the overnight rate. This is achieved by allowing banks to borrow/deposit funds at the Riksbank at the repo rate plus/minus 0.1 percentage points, depending on whether there is an overall surplus or deficit vis-à-vis the Riksbank. This holds the overnight rate within a narrower band than the interest rate corridor and helps to make monetary policy signaling clearer.

7. Balance sheet One from 2005-2007 Another from 2007-2011, to show the differences under the financial crises. 8,95 SEK = 1 Euro (2011-05-10) I generally just think 10 SEK = 1 Euro

8. Repo rate 2005-2007

9. Repo rate 2008-2011

10. Thank you for your time! Questions?