Make Kitco Your Homepage

UPDATE 1-Swedish central bank adds Norwegian, Danish crowns to reserves

Kitco News

(Adds comment from central bank official)

STOCKHOLM, Nov 7 (Reuters) - Sweden's central bank is adding the Danish and Norwegian crowns as new reserve currencies, but will stay out of the Chinese yuan for now, the Riksbank said on Wednesday.

The British pound, which the Riksbank already holds, will also get the status of one of five contingency currencies along with the two Nordic units, the dollar and the euro, the bank said in a statement.

Sweden will not - unlike the European Central Bank, Swiss National Bank and Bank of England - include China's yuan as a permitted holding in the currency reserves. "Our current conclusion is that only OECD currencies qualify," Heidi Elmer, head of the Riksbank's markets department told Reuters.

She said the yuan was at present not needed as a contingency currency and it did not meet the central bank's conservative requirements of high liquidity and creditworthiness for holdings in the gold and foreign exchange reserves.

The new policy will apply from Jan. 1, 2019.

The Riksbank also repeated a call on the Swedish Financial Supervisory Authority to set the Liquidity Coverage Ratio (LCR) requirements for major Swedish banks in all significant currencies.

(Reporting by Daniel Dickson Editing by Matthew Mpoke Bigg; editing by David Stamp)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.