The foreign exchange market for kroner is able to absorb large company acquisitions

Economic Memo – December 2021 – No. 11

Authors Grønlund, Asger Munch; Risbjerg, Lars; Tjørnum, Mathias Busk
Subject Capital flows and direct investments; The money and currency markets; Fixed-exchange-rate policy
Type Economic Memo
Year 2021
Published 17 December 2021
Abstract icon In the recent years Danish companies have increasingly acquired foreign companies and vice versa. The size of some company acquisitions surpasses the daily turnover in the foreign exchange market for kroner. A case study in this Economic Memo shows that large company acquisitions have not exacerbated krone exchange rate movements over and above the normal daily variation. (Memo available in Danish only).