Business, Financial & Forex news

Decline in prices in the real estate market in Sweden, reduced the Swedish crona The euro has risen in price above the level of 10 Swedish cronas

The Swedish krona has been devastated by a record this year: the euro has risen in the price above SEK 10, which happened for the first time since the beginning of this year. Investors are concerned that the real estate market of this country began to observe not only a slowdown in prices, but even their fall when some objects manage to sell quickly, only have to offer the buyer a discount of 15-20% of the market price. All this may indicate that the market not only has a “financial bubble” in recent years, but that it has now become blown away. There is a risk that this is one of the signs that inflated property prices in the Scandinavian countries, in general, will also begin to decline.

The fall of the Swedish krona this time is due to the fact that investors from Sweden are changing money for foreign currencies in order to acquire foreign securities. November 22, was also in the red and the Stockholm Stock Exchange index. The record low-interest rates of the Royal Bank of Sweden do not save the situation. In addition, the unfulfilled expectations of investors in the Swedish crown, that the bank regulator of Sweden will still raise the rate and make the currency of this country more expensive, led to the fact that they increased the sale of the monetary unit of this Scandinavian state. In Russia, according to the Central Bank of Russia on November 23, for 10 Swedish kronas they give 70.1591 rubles.

Blowing off the “bubble” in the Swedish property market and the devaluation of the Swedish koruna may affect other sectors of the economy of this Scandinavian country, in particular, retail trade. In particular, this will affect the spending of Swedish families on pre-Christmas gifts, which are expected to decline for the second consecutive year. This year it is expected that these expenses will be reduced by an average of 14% compared to last year.