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Sveriges Riksbank, commonly called Riksbanken, implemented a negative interest rate on July 2, 2009. The moved surprised forex traders and others. However, it was in keeping with the bank’s reputation for innovation.
What Is Riksbanken?
Sveriges Riksbank, the central bank of Sweden, is the world’s oldest central bank. It is also the world’s third-oldest bank in operation. Sveriges Riksbank, commonly known simply as Riksbanken, was founded and began operations in 1668.
Riksbanken has a reputation for innovation among FX traders. This is because it sometimes implements unusual, even groundbreaking policies. For instance, it was the first central bank in the world to execute a negative interest rate. This happened on July 2, 2009, when Riksbanken changed its repo rate to 0.25%. This pushed its linked overnight deposit rate down to −0.25%. The overnight lending rate dropped to 0.75%.