Losses on dollar assets contributed to pressure on the Danish krone

News - July 2020 - No. 7

Authors Danmarks Nationalbank
Subject Monetary policy; Fixed-exchange-rate policy; Balance of payments; Financial statistics
Type News
Year 2020
Published 3 July 2020
A new publication by Danmarks Nationalbank compares the pressure on the krone during the corona crisis with three earlier periods of krone pressure over the past 12 years. The pressure on the krone in March this year was unusual because it was not impacted by for example speculation about the Danish fixed exchange rate policy. Rather, it was caused by Danish institutional investors selling kroner in response to a decline in the value of their foreign assets.