The Swedish Central Bank (Swedish: Sveriges riksbank, Riksbanken), also known as the Swedish National Bank and the old translation of the Swedish Bank, was founded in 1668. It is the central bank of Sweden and the oldest central bank in the world. On the 300th anniversary of its establishment in 1968, to commemorate Alfred Nobel, the Riksbank funded the establishment of the Riksbank Economics Prize, the Nobel Prize in Economics.

The Riksbank is affiliated with the Swedish Parliament and issues the Swedish krona. It is responsible for monetary policy to maintain price stability and maintain a safe and efficient payment system. The Riksbank believes that price stability depends on low and stable inflation, and the consumer price index should be maintained at around 2%. The Riksbank manages about SEK 200 billion in assets to implement monetary policy, buy and sell foreign exchange, and provide emergency liquidity support to banks when needed.

History

The predecessor of the Riksbank was the Stockholms Banco, founded in 1656 by John Palmstrucci, which was the first bank in Sweden. Although the Stockholm Bank was a private bank, it was closely regulated by the state. Although the Bank of Stockholm issued the first banknotes in Europe, the bank collapsed in 1664 due to a lack of public confidence in the banknotes. Four years later, the Riksens Ständers Bank was established by the Swedish Parliament, which was directly regulated by the parliament. The Riksens Bank financed Sweden's foreign military forces, such as the Skorn War and the Great Northern War. In 1701, banks issued bills called transportsedlar, the precursor to modern banknotes.

In 1866, the Swedish Parliament replaced the old Parliament, and the Parliament Bank changed its current name. In 1873, Sweden joined the Scandinavian Monetary Union, implemented the gold standard, and began issuing the Swedish krona. In 1897, the National Bank Act (Riksbankslagen) was passed, and the National Bank officially became the central bank of Sweden, with the exclusive right to issue banknotes.

Successive Presidents

Presidents/Central Bank Governors Assumed tenure Ivar Rooth 1929-1948 Klaas Booker 1948-1951 Mats Lemne 1951-1955 Per Ösbrink 1955-1973 Krister Wickman 1973-1976 Karl Henrik Noland 1976-1979 Lars Wohlin 1979-1982 Bent Denis 1982-1993 Obenbekstrom 1993-2002 Heckstein 2003-2005 Inves 2006 - (term until end of 2011)

Policy interest rate

The Swedish Central Bank is responsible for setting policy interest rates. The deposit rate offered by the Swedish Central Bank to depositing banks is the policy rate minus 0.1%, while the rate at which banks borrow from the Swedish Central Bank is the policy rate plus 0.1%.

Date Policy Rate Change Data Source September 20, 2022 1.75% + 1.00% November 24, 2022 2.50% + 0.75% February 9, 2023 3.00% + 0.50%