Apr 2 2024: On Tuesday, the Swedish central bank announced a proposal to Sweden’s parliament for a capital injection of 43.7 billion Swedish crowns ($4.05 billion) to bring its equity back to the statutory base level.
Governor Erik Thedeen emphasized that while negative equity does not immediately impact the bank’s ability to conduct monetary policy, restoring financial independence is crucial for maintaining long-term confidence in an independent monetary policy.
The Riksbank incurred losses of approximately 80 billion crowns in 2022, resulting in negative equity of 18 billion crowns. This was primarily due to a sharp rise in interest rates, leading to a decrease in the value of bonds purchased by the bank between 2015 and 2021.
Legislation introduced in 2023 stipulates that the Riksbank’s equity should target 60 billion crowns, with a basic level around 40 billion crowns. As of the end of 2023, the bank’s equity stood at around minus 2 billion crowns