Foreign Exchange Guide to Sweden
In this guide we review :
- Swedish krona info - general info about the Swedish krona
- Swedish krona in the markets - recent SEK moves and predictions from the FX markets
- Buying Swedish krona cash online - travel money for Sweden
- Sending money to Sweden - save on Swedish krona bank transfers to Sweden
- Swedish krona exchange rates - latest info & charts.
Swedish krona (SEK) general currency information
One krona is subdivided into 100 øre.
Ordinarily, the Swedish krona is not of regular interest to market commentators or journalists, unlike the FX 'majors' – the euro, US dollar, Australian dollar, Swiss franc etc. The krona is, however, the world’s 9th most traded currency, according to 2016 data from the Bank for International Settlements, and it contributes more to total foreign exchange market volume (around 2.2%) than does the New Zealand dollar (2%), which is considered an FX major.
Sweden retains the krona despite its membership of the European Union. In a national referendum in 2003, a majority of Swedish voters opposed adopting the euro as the nation’s currency and currently none of Sweden's major political parties are interested in revisiting the 'euro vs. krona' debate. In a survey of public opinion by the University of Gothenburg in 2013, only 9% of Swedes were in favour of adopting the euro.
Since 1995, the krona’s lowest valuation against the US dollar came in July 2001 when USD/SEK reached 11.05. The currency was strongest in April 2008 when USD/SEK fell to just 5.82. Against the euro, since the single currency's introduction in 1999, EUR/SEK has traded between 8.02 and 11.79.
Swedish krona (SEK) in the markets
What a year it has been for the krona.
In the final week of August, the krona was the best performing G10 currency of 2017, being the only other G10 currency to gain against the euro (gain of +0.9%). On August 25th, SEK/EUR rates were slightly above 0.105 (EUR/SEK 9.5). Against the troubled US dollar, the krona was up an impressive 13.3% on the year at rates above 0.124 (USD/SEK 8.036).
TD Securities had it right when they said in February that the Swedish krona was “a core component of [TD's] FX outlook for 2017.” Their strategists correctly predicted at the time that the Swedish economy would remain on a solid footing and that inflation would rise.
The good news for those in Sweden is that it seems that the krona isn’t done yet.
On August 21st, Dutch bank ABN Amro said that the krona would appreciate against the euro to 0.114 (EUR/SEK 8.75) by the end of H1 2018.
In September, against the US dollar, ABN forecast the krona would climb 19% from rates at the time to 0.1485 (USD/SEK 6.73) by the end of 2018.
As their reasons for krona appreciation, ABN have cited a robust Swedish economy, above-2% inflation and an improvement in global trade; all of which are likely to force the Riksbank to normalise monetary policy after years of low interest rates and quantitative easing.
Sweden Trip Checklist
Travel money for Sweden
Save money and time by Ordering your Swedish krona online from Travelex, you get better rates and can pick up the SEK cash locally or even on travel day at the airport.
Another popular option is to use a Pre-paid Travel Card. Your Debit/Credit Card provider will charge you 2% from market mid-rate, but your bank may also charge an extra 3% as an “Overseas Transaction Charge” plus “Overseas ATM” fees for withdrawing cash.
For card purchases if offered a choice of currencies always select to Pay in Swedish krona otherwise you may get much worst exchange rates.
Sending money to Sweden
When sending money to Sweden it’s important to compare your bank’s rates & fees with those we have negotiated with our partner money transfer providers. To get a better deal you should follow these 3 simple steps :
- Open an account with a BER reviewed FX provider (id docs may be required)
- You specify the local or Swedish krona amount you want to transfer
- Make a local currency domestic transfer for the requested amount to the provider's bank account in your country
- Once your funds are received by the provider the converted SEK amount will be transfered to the recipient account you specify in Sweden.
By comparing the rates of FX specialist providers rates versus your bank's standard rates you can hopefully save around 5% and maybe more - end result is more Swedish krona deposited into the recipient bank account in Sweden and less margins and fees kept by the banks!