2024-07-24 20:42:13
According to a report by the International Monetary Fund (IMF), the Swedish krona is the most undervalued currency in the world.
The krona’s weak position against the euro and the dollar currently makes holidays abroad more expensive than usual for many Swedes.
As reported by Day.Az, the euro has become more expensive by more than 12 percent in three years.
According to the IMF, the crown is undervalued by 17 percent. This figure is based on an average value that fluctuates between -0.6 and -23.5 percent according to the so-called REER (Real Effective Exchange Rate) index.
If the crown strengthens, the dollar will be worth about 8.8 crowns, and the euro 9.6 crowns according to the exchange rate (currently 1 dollar = 10.55 crowns, 1 euro = 11.53, ed.)
Swedbank predicts that the krona will strengthen within 6-12 months, but does not rule out a decline this autumn. The outcome is influenced, among other things, by future interest rate cuts both in Sweden and abroad, as well as the US elections.
The IMF also singles out Singapore, India and Germany as countries with undervalued currencies. At the other end of the spectrum are Argentina, Italy and the UK.
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