Norway’s central bank announced today that it will cut its daily local currency (krona) markets to zero from 700 million kroner ($ 80 million) due to its larger-than-expected cash inflow from its oil industry. country.
The revised policy takes effect on Friday and will last until the end of November, Norges Bank announced.
The koruna fell after the announcement, to 9.94 against the euro, compared to 9.92 previously.
The central bank usually buys kroner on behalf of the government on a daily basis to allocate funds to the government’s budget, converting the currency it earns from oil and gas and the state treasury into Norwegian kroner.
The recent rise in oil and gas prices has led to huge cash inflows into Norway, however.
“The change is due to the reduced need for transfers from the state coffers to the government due to higher-than-expected net cash flows from the oil industry,” Norges Bank said in a statement.
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Source From: Capital
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