On the international exchange market, SEK is the shortening of Swedish Krona and is the national currency of Sweden. It is one of the most considerable currencies that is traded on the Mondial Forex market presently.
The Swedish krona is translated as “crown,” which has been the currency of Sweden since 1873 after the signing of the Scandinavian Union agreement when three countries Norway, Sweden, and Denmark decided to replace their national currencies.
One krona is divided into 100 eras, however, in day-by-day life, the Swedes do not use the small change, and the price is rounded up to 1 SEK.
Swedish Krona has a serious interdependence with other currencies, such as Danish Krone and Norwegian Krone.
At the same time, nearly all of the European Union countries achieved implementation of the euro currency; Sweden, Denmark, and Norway are few European Union members that decided to keep their prior coins.
Even though the Maastricht Treaty imposes Sweden to be liable for the possible converting into euros. The referendum in the year 2003 showed that around 56 percent of citizens are against of implementation of the new currency. Since that time, the country has denied connecting with the euro currency, escaping the particular monetary requirements, which would demand its usage.
The government has not received enough support from the citizens yet, and the demand for the euro only dropped for the past years.
Though there is still a dispute on this theme, it gives the impression that there is no converting scheme for the nearest time. EUR / SEK is the most considerable exchange rate in Scandinavia and affects the vibrations of the CHF / SEK pair directly.
With a weak euro, the Swiss franc is obtaining strength and domination among other Eurozone currencies. However, from 2017-2018, the Swedish krona is related more to a hedging instrument, which makes the CHF / SEK trade advantageous and possibly profitable.
Even though Sweden has a rather small-scale economy, the country holds on for educated, cultured and technically perceptive employees and many multinational corporations work under its jurisdiction.
Furthermore, the world’s unpredictability, especially during the danger of the international trade war, has led to several deprivations for SEK. Respectively, it’s not attractive for potential investors.
As a consequence, incorrect economic policy leads to an overall vulnerability of the Swedish krona for the period from the year 2015 to 2019. Notwithstanding, experts anticipate that the krona will return eventually, and support the shift to the euro, taking into account the global sensitiveness of the Swedish currency.
On the contrary, SEK, together with CHF, is seen as an efficient way to preserve the capital. Amidst the declining profitability of Swiss bonds in 2018-2019, the comparatively stabilized exchange rate of the Swedish krona is credible.