Norway Government Says Central Bank Is Winning Krone Battle (1)
The krone is still 26 percent overvalued against the euro, according to an Organization for Economic Cooperation and Development gauge of 12 currencies ranked by purchasing power. Photographer: Kristian Helgesen/Bloomberg
The Norwegian central bank’s efforts to tame the krone are paying off for exporters as the economy of western Europe’s largest oil producer slows, Industry Minister Monica Maeland said.
“I don’t know if it’s enough but it is working,” Maeland, who took office in October, said yesterday in an interview in Oslo. “The exchange rate of the Norwegian krone is important for the export industry and the fact that it has weakened is good.”
The krone has lost 12 percent against the euro this year, paring gains since 2008 when it emerged as a haven from Europe’s debt crisis. Norway’s purchasing managers’ index released this week showed export orders rose to the highest since June 2011, helping the economy as house prices and retail sales slide.