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Why Has the Krona Fallen?

Published tisdag 29 november 2005 kl 12.00

The Swedish central bank has appointed external advisors to help it determine what affects the exchange rate of the krona, and in particular why the currency has fallen over the last decade.

Among the external researchers recruited are experts from France, the United States, and Norway. The Swedish krona has fallen in recent months more than any other currency, dropping against the dollar by 25 percent in the past year.

Experts here say one reason is because the central bank has lowered interest rates here, while its counterparts in other countries have raised theirs.

The results of the project will be reported during the second half of next year.

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