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The exchange rate for the krone and exchange rate expectations
- Article from:
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Norges Bank. Inflation Report
- Article date:
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March 1, 2004
- Author:
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Copyright informationCopyright Norges Bank, Economic Intelligence Dept. Mar 2004. Provided by ProQuest LLC. (Hide copyright information)
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The krone appreciated markedly from May 2000 until January 2003 and has subsequently depreciated considerably. A comparison shows that the krone exchange rate does not fluctuate more than exchange rates in other countries. Exchange rate expectations for the krone have been considerably more stable than the actual exchange rate in the last couple of years.
The nominal exchange rate
Norway is part of a global capital market. Therefore, the krone may be expected to fluctuate considerably at times. The global economy is frequently exposed to different types of disturbances, and the krone exchange rate may be affected by oil prices and conditions in international capital and financial markets.1
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