I Have a question regarding the Norwegian Krone. It has suffered…
I Have a question regarding the Norwegian Krone. It has suffered relentlessly over the previous week but it has been on a downward trajectory for a long time now. It was down around 10 per cent against the USD over about 2 days due mainly to liquidity problems after the oil debacle between Russia and Saudi Arabia. As you will know it has the massive Sovereign Wealth Fund. Since the wealth funds inception it has been selling the Krone it has taken from the oil and gas industry and been buying foreign currencies to purchase assets abroad. The oil and gas industry is now on its knees and that flow of money has to go in reverse to support the economy. Even accounting for the fall in most investments the weak Norwegian Krone has mitigated some of those recent losses. I believe massive repatriation of money back into Krone is now a must to support the economy. Quite possibly if you look at the charts it has already started. What say you.
p.s Last week i started selling my Aussie to buy Krone.