It's not just cheaper for Swedes to consume abroad, but also, for example, imported food products become cheaper in Sweden. The strengthening of the krona also means that Sweden's central bank can more easily maintain its inflation target, and it also has a calming effect. [1]
Why has the krona strengthened?
There are several factors behind the strengthening of the krona. Sweden has had a good recovery in the economy after the pandemic. Sweden has low government debt and the Riksbank has stated that the Swedish krona is undervalued. The weakened US dollar has also led to investors choosing other currencies, such as the Swedish krona. Additionally, Sweden's strong defense industry may have increased demand for the Swedish krona.
What can you do when the krona has strengthened
- Vacation abroad when you get more for your money.
- Take advantage of buying foreign stocks and funds, you simply get more for your Swedish kronor.
- Shop for imported goods such as electronics, food, and clothing from abroad. It may also take time for prices to drop even if the krona has strengthened, so hold on until it becomes apparent.
