Riksbank is now concentrating on FX because it is worried that the non-FX tools are not much efficient in raising the credit multiplier and are leading funds towards low yield investments resulting in real estate and capital market disturbance.
Non-FX policy option consists of increasing buying SEK denominated assets, lowering the deposit rate below the current reading of -0.35%, or the central bank lending directly to firms sidestepping commercial banks.
"The Riksbank's apparent shift away from using domestically focused tools is a sign of economic weakness not of strength", says Societe Generale.
Riksbank's intervention might be seen as a chance to purchase cheap SEK on a dip by the investors. At present, the balance sheet of the Swedish central bank is at a moderate 15% of the GDP, much lower than the levels of other central banks.


Central Banks Could Buy 20,000 Tonnes of Gold: BofA
BOJ Set for Rate Hike as Inflation and Yen Pressure Mount
BOJ Flags Import Costs and Yen Shocks as Persistent Inflation Risks
ECB Rate Hike in Focus as Oil Tops $100
China Boosts Gold Reserves by 650,000 Ounces as Prices Rally
FxWirePro: Daily Commodity Tracker - 21st March, 2022




