Gold and foreign exchange reserve

Bild på guldtacka

The gold and foreign exchange reserve consists, as the name implies, of gold and securities denominated in foreign currency, as well as Special Drawing Rights with the International Monetary Fund (IMF). The primary purpose of maintaining a foreign exchange reserve is to be prepared for foreign exchange interventions.

 

The foreign exchange reserve is managed with the aim of yielding the highest possible return, given the risk level set by the Executive Board of the Riksbank. The foreign exchange reserve, excluding Special Drawing Rights with the IMF, is mainly invested in government-guaranteed securities denominated in six currencies: the US dollar (37 per cent), the euro (37 per cent), sterling (11 per cent), the Japanese yen (8 per cent), the Canadian dollar (4 per cent) and the Australian dollar (3 per cent).

 

The gold reserve is managed in accordance with the principles in an agreement between 15 central banks in a number of industrial nations. This agreement, which was first signed in 1999 and extended in 2004, restricts the quantity of gold that may be sold or lent before autumn 2009. As a result the Riksbank only lends part of its gold holdings.


LAST UPDATED 4/16/2004