What is ‘SEK’
SEK in the foreign exchange market, is the abbreviation for the Swedish Krona, the national currency of Sweden. It is one of the best currency trades in the world, with about 2 percent of the Forex market.
Krone means “crown” – was the currency of Sweden since 1873, as also noted, the symbol cu. He replaced Swedish riksdaler. One Krone consists of 100 øre. (Öre coins have been discontinued, and prices are usually rounded to the nearest Krone.) One of her nickname in Swedish spänn.
BREAKING DOWN THE ‘SACK’
SEK was chosen as a code for the Swedish Krona in 1978 by the International organization for standardization, in its ISO 4217 list of currency units.
The exchange rate of Swedish Krona largely depends on monetary policy in Sweden. The country’s Central Bank, called the Swedish Riksbank, the world’s third oldest Bank and the oldest Central Bank.
In 1992, Sweden introduced a floating exchange rate for SEK, and it was allowed to float against other currencies since then, with the Swedish Riksbank to intervene occasionally to stabilize the Krona.
SEK has a strong correlation with the currencies of the other Nordic countries, such as the Danish Krone (DKK) and Norwegian Krone (NOK).
While most European Union countries adopted the Euro, Sweden (like Denmark and Norway) is one of the few member States of the EU, which decided to preserve their legacy currencies.
Despite the fact that the Maastricht Treaty contains Sweden are responsible for a possible transition to the Euro referendum in 2003, 56 percent of the vote against the new currency, and since then, has Held on joining the Euro, eschewing some necessary cash requirements, which would require it.
The government has stated that it will not bring a new referendum on the issue until it has sufficient support, but the appetite for the Euro has decreased. Although it is still sometimes discussions on this topic, it seems there are no plans to transfer soon. EUR/SEK is the most important course in Scandinavia.
Features of ‘SEK’
Despite Sweden’s relatively small economy, its well-educated and tech-savvy staff and the fact that it is home to many multinational corporations in many Forex observers to classify Swedish kronor as a refuge.
Still, the uncertainty in the global economy – especially the threat of international trade war, led to some losses for the Krona in recent months. In one recent study indicates that, as of April 2018, SEK was the lowest performing G10 currency this year with losses of around 5 percent, 3 percent and 8 percent compared to the Euro, the dollar and the yen.
He also cited the Swedish concern about inflation (at 1.6%, below the target level of the Central Bank’s 2%) and claimed that crowns can be bad rates, taking into account the global nature, should trade and tariffs, the tension between the US and China continues to grow.