Swedish central bank chief says skeptical of currency intervention

STOCKHOLM (Reuters) – The Swedish central bank’s decision to asses the possibility of hedging a portion of foreign exchange reserve should not be seen as a veiled threat of currency intervention, Governor Erik Thedeen said on Thursday.

“It’s not a covert currency intervention,” Thedeen told a news conference and added it was normal risk management. “We are very skeptical of currency interventions.”

The Riksbank raised it’s key policy rate by 25 basis points on Thursday and said it was considering hedging part of its foreign exchange reserves as a way to reduce the Riksbank’s financial risks.

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