Pundits globally are flabbergasted Swedes still go to cafés, to restaurants and to hang out in parks without face masks on. The Coronavirus in Sweden has so far claimed 611 deaths, with 7,849 confirmed cases. Swedish people still send their kids to school and are not hoarding much of anything compared to countries like the U.S. But just like in most of the world many businesses are hit hard, and the country’s central bank has started the printing presses.
Also read: Major Swedish Bank Fined $386 Million for Hiding Money-Laundering Evidence
The Swedish Central Bank Has Started The Printing Presses
The Swedish Central Bank, the oldest-running operation of its kind in the world, called “Riksbanken” has predictably responded to the crisis by starting the printing presses. They’ve promised the banks a 500 billion SEK ($55B) credit line to “grease” the wheels, making sure there is enough liquidity in the system. Riksbanken’s chief Stefan Ingves has also stated that there are no limits to how much these presses can print, while carefully avoiding the term QE, or quantitative easing. Ingves has also previously stated at a press conference last month:
The Riksbank stands ready to do more if and when necessary to help the Swedish economy get through this crisis as well.
Citing liquidity problems on the financial markets, the Swedish central bank is now planning to buy government, corporate and mortgage bonds, and is auctioning USD denominated loans for around $70 billion. Riksbanken has already increased its government bond-buying target by $30 billion, after leaving their most important interest rate, the overnight repurchase rate, at zero percent.
