Currencies // Developed Markets
The NOK/SEK currency pair represents the number of Swedish kronas that can be bought with a Norwegian krone.
|Max. order size||90,000,000|
The Norwegian krone (NOK) is the currency of Norway and one of the top ten traded currencies on the foreign exchange market. The krone was introduced in 1875. In doing so the country joined the Scandinavian Monetary Union with Denmark and Sweden. In 1914 the union broke up and each of the Nordic kingdoms kept the name krone but created their own separate currencies. The krone was fixed until 1992 when the Norges Bank floated the currency in a managed float after a run on the currency. The krone is viewed as a petro-currency as it fluctuates quite considerably in line with the price of oil. The Swedish krona (SEK) has been the currency of Sweden since 1873. Introduced as part of the Scandinavian Monetary Union, it lasted until World War I when Sweden went its own way along with Denmark and Norway. Sweden has had a floating exchange rate since 1992, after the fixed rate collapsed because of a financial system crisis. Sweden currently has no plans to join the euro as it is not part of ERM II (the current European Exchange Rate Mechanism). The Norwegian Central Bank or Norges Bank is the central bank of Norway. Amongst other things it manages the Norwegian government pension fund. It is responsible for managing monetary policy to create a low and stable inflation environment by the use of interest rate policy. The Swedish central bank is known as the Sveriges Riksbank and is the worldâ€™s oldest central bank, having been founded in 1668. As a result of the financial crisis of the early 1990s the bank developed a new monetary policy based on a floating exchange rate and a low inflation target.
Factors affecting the value of the Norwegian currency are economic indicators including the level of interest rates, trade balance, unemployment, price inflation and GDP. The value of Norwayâ€™s currency is also affected by the price of coal and gas as well as oil. Other influencing factors are base metal prices for its shipbuilding industry. Factors affecting the value of the Swedish krona are economic indicators including the level of interest rates, trade balance, unemployment, price inflation and GDP. The value of Swedenâ€™s currency is also affected by the price of coal and oil and other commodities like base metals.