off-the-wire

UPDATE 1-Currency intervention costly and inefficient, Norway c.bank chief says

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates with comment on currency intervention, quote) OSLO, May 9 (Reuters) -


Currency market intervention is costly and unlikely to be an efficient policy tool over time, Norway's central bank Governor Ida Wolden Bache told a hearing in parliament on Tuesday. "Historical experience ... shows that currency interventions to secure a certain level of the currency are costly and not very efficient over time," Bache said. Norway's floating currency exchange rate allows the country to set policy interest rates at levels that are the most appropriate for the economic outlook, she said. Norges Bank


last intervened in the currency market to support the crown in March 2020 to counter a slump during the early stage of the COVID-19 pandemic.


Bache reiterated that Norges Bank's currency transactions on behalf of the government and the sovereign wealth fund are not part of the country's monetary policy.
(Reporting by Terje Solsvik, editing by Anna Ringstrom)

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