Monetary Policy of Sweden - History

History

The main events in the monetary history of the Krona are:

• Introduction of the Krona, based on the gold standard on May 5, 1873. (1 kg of gold = 2480 Kronor)
• The tie to gold is abolished on August 2, 1914.
• The tie to gold is de facto re-established in November 1922.
• The tie to gold is de jure re-established on April 1, 1924
• The tie to gold is abolished once more on September 27, 1931. Floating exchange rate.
• A tie to the British Pound is introduced in June 1933. (1 GBP = 19.40 SEK)
• Tied to the US Dollar on August 28, 1939. (1 USD = 4.20 SEK)
• A controlled appreciation of 14.3%, against all other currencies and gold on July 13, 1946. (1 USD = 3.60 SEK)
• A controlled depreciation of 30.5% against the USD on September 19, 1949. (1 USD = 5.17 SEK)
• Membership of the International Monetary Fund and part of the Bretton Woods system on August 31, 1951.
• A controlled depreciation of 1.0% against gold and a 7.5% appreciation against the USD on December 21, 1971.
• A controlled depreciation of 5.0% against gold and a 5.6% appreciation against the USD on February 16, 1973.
• Membership in the European "currency snake" in March 1973.
• Adjustment of the exchange rates within the "snake"; a controlled 3% depreciation against the DEM on October 18, 1976.
• Adjustment of the exchange rates within the "snake"; a controlled 6% depreciation against the DEM on April 4, 1977.
• Sweden leaves the "snake". A controlled 10% depreciation against a trade based "currency basket" on August 29, 1977.
• A controlled depreciation of 10% against the "currency basket" on September 14, 1981.
• A controlled depreciation of 16% against the "currency basket" on October 8, 1982.
• A tie to the European Currency Unit is introduced unilaterally on May 17, 1991. (1 ECU = 7.40 SEK)
• Floating exchange rate on November 19, 1992