| Sveriges Riksbank Sveriges Riksbank (Swedish) |
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| Headquarters | Stockholm | ||
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| Established | 1668 | ||
| Governor | Stefan Ingves | ||
| Central Bank of | Sweden | ||
| Currency | Swedish krona | ||
| ISO 4217 Code | SEK | ||
| Website | http://www.riksbank.se | ||
| Preceded by | Riksens Ständers Bank (1866) Stockholms Banco(1668) |
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Sveriges Riksbank, or simply Riksbanken, is the central bank of Sweden and the world's oldest central bank. ('stɔkhɔlm is Sweden 's Capital and its largest City. It is the site of the national Swedish government, the parliament, and the "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. A currency is a unit of exchange, facilitating the transfer of Goods and/or services It is one form of Money, where money is ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established A website (alternatively web site or Web site, a back-construction from the Proper noun World Wide Web) is a collection of Web pages A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states "Sverige" redirects here For other uses see Sweden (disambiguation and Sverige (disambiguation. [1]. It is sometimes called the Swedish National Bank or the Bank of Sweden
History
The Riksbank began its operations in 1668, its antecedent being Stockholms Banco (also known as the Bank of Palmstruch), which was founded by Johan Palmstruch in 1656. Stockholms Banco (also known as the Bank of Palmstruch or Palmstruch Bank) in Sweden was the first European bank to print Banknotes The bank Johan Palmstruch (born 1611 in Riga, died 1671; named Johan Wittmacher before he was ennobled was a Dutch merchant credited with Although the bank was private, it was the King who chose its management: in a letter to Palmstruch he gave permission to its operations according to stated regulations. The monarch is the Head of state of the Kingdom of Sweden. Sweden being a Constitutional monarchy with a Representative democracy based on a
However, Stockholms Banco, the world's oldest note-issuing bank collapsed as a result of the issuing of too many notes without the necessary collateral. Palmstruch, who was considered responsible for the bank's losses, was condemned to death, but later received clemency. A pardon is the forgiveness of a crime and the penalty associated with it On September 17, 1668, the privilege of Palmstruch to operate a bank, was transferred to the Riksens Ständers Bank (translation: Bank of the Estates of the Realm) and was run under the auspices of the parliament of the day. Events 1176 - The Battle of Myriokephalon is fought 1462 - The Battle of Świecino (or Battle of Żarnowiec Due to the failure of Stockholm Banco the new bank was managed under the direct control of the Riksdag of the Estates to prevent the interference of the King. The Riksdag of the Estates, or Ståndsriksdagen, was the name used for the Estates of the Swedish realm, or Rikets ständer, when they were assembled When a new Riksdag was instituted in 1866, the name of the bank was changed to Sveriges Riksbank. The Riksdag is the official Swedish term of the Parliament of Sweden and the Parliament of Finland (in Finland alongside
Having learnt the lesson of the Stockholms Banco experience, the Riksbank was not permitted to issue bank-notes. Nevertheless, in 1701 permission was granted to issue so called credit-notes. Some time in the middle of the 18th century counterfeit notes began appearing which caused serious problems. The 18th century lasted from 1701 to 1800 in the Gregorian calendar, in accordance with the Anno Domini / Common Era numbering system To prevent forgeries it was decided that the Riksbank should produce its own paper for bank-notes and a paper-mill, Tumba Bruk, was founded in Tumba, on the outskirts of Stockholm. Forgery is the process of making adapting or imitating objects statistics or documents (see False document) with the intent to deceive. Paper is thin material mainly used for writing upon printing upon or packaging Tumba Bruk is the printing company responsible for manufacturing of the Swedish krona banknotes Tumba is a bimunicipal Districts of Tumba Vretarna Tuna Nackdala Tumba centrum Storvreten Lövholmen
A few years later, the first commercial banks were founded and these were also allowed to issue bank-notes. The bank-notes represented a claim to the bank without interest paid, and thus became a considerable source of income to the banks. Interest is a fee paid on borrowed capital Assets lent include Money, Shares, Consumer goods through Hire purchase, major assets Income, refers to consumption opportunity gained by an entity within a specified time frame which is generally expressed in monetary terms Nonetheless, security in the form of a deposit at the Riksbank was required to cover the value of all notes issued. A deposit account is a current account at a Banking institution that allows money to be deposited and withdrawn by the account holder with the transactions and resulting balance The economic value of a good or service has puzzled economists since the beginning of the discipline
During the 19th century the Riksbank maintained a dominant position as a credit institution and issuer of bank-notes. The 19th century of the Common Era began on January 1, 1801 and ended on December 31, 1900, according to the Gregorian calendar Credit is the provision of resources (such as granting a Loan) by one party to another party where that second party does not reimburse the first party immediately thereby generating The bank also managed national trade transactions as well as continuing to provide credit to the general public. Trade is the willing exchange of goods, services, or both Trade is also called Commerce. The first branch-office was opened in 1824, later followed with subsidiary branches opening in each county (län). The present operational activities as a central bank differ from those during the 19th century. For example, no interest-rate related activities were conducted.
The position of the Riksbank as a central bank dates back to 1897 when the first Riksbank Act was accepted concurrently with a law giving the Riksbank the exclusive right of issuing bank-notes. Law is a system of rules enforced through a set of Institutions used as an instrument to underpin civil obedience politics economics and society A right is a legal or moral Entitlement or Permission. Rights are of vital importance in theories of Justice and deontological ethics This copyright concluded its role and importance regarding monetary policy in a modern sense, as the exclusive right to issue notes is a condition when conducting monetary policy and defending the value of a currency. Copyright is a legal concept enacted by Governments, giving the creator of an original work of authorship Exclusive rights to control its distribution usually for A currency is a unit of exchange, facilitating the transfer of Goods and/or services It is one form of Money, where money is Behind the decision were repeated demands that the private banks should cease to issue notes as it was considered that the ensuing profits should befall the general public.
The Swedish currency was until 1931 backed by gold and the paper-certificates could be exchanged for gold coins. Year 1931 ( MCMXXXI) was a Common year starting on Thursday (link will display full 1931 calendar of the Gregorian calendar. The bank was obligated until 1975 by the Swedish constitution to exchange the paper-certificates for gold, but in 1931 a specialized temporary law was written to free the bank from this obligation. Year 1975 ( MCMLXXV) was a Common year starting on Wednesday (link will display full calendar of the Gregorian calendar. Year 1931 ( MCMXXXI) was a Common year starting on Thursday (link will display full 1931 calendar of the Gregorian calendar. This law was renewed every year until the new constitution was ratified 1975 which split the bank from the government into a stand-alone organization not obligated to exchange notes for gold. Year 1975 ( MCMLXXV) was a Common year starting on Wednesday (link will display full calendar of the Gregorian calendar. [2]
In November 1992, the fixed exchange rate regime of the Swedish Krona collapsed. Year 1992 ( MCMXCII) was a Leap year starting on Wednesday (link will display full 1992 Gregorian calendar) A few months later, in January 1993, the Governing Board of the Riksbank developed a new monetary policy regime based on a floating exchange rate and an inflation target. Year 1993 ( MCMXCIII) was a Common year starting on Friday (link will display full 1993 Gregorian calendar) Floating rate may also refer to a Floating interest rate applied to a Loan or other lending product These policies were extensively influenced by assistance from the Bank of Canada, which had extensive previous experience controlling inflation, while similarly being a small open economy, heavily subject to foreign exchange rate swings[3]. For the defunct commercial bank see Bank of Canada (commercial.
From 1991-93, Sweden experienced the most severe recession since the 1930s. The recession in the early 1990s forced inflation down to around 2%. The rate of inflation continued to be low during the subsequent years of strong growth in the late 90s.
Famous Motto
The Bank of Sweden has a motto which is famous in Sweden: Hinc robur et securitas ( Herefore strength and safety ) .
Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel
Following its third centennial in 1968, the Bank instituted the annual Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel, which is awarded with the Nobel Prizes at the Prize Award Ceremony in Stockholm, on December 10, the anniversary of Nobel's death. The Nobel Memorial Prize in Economic Sciences, officially named The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel (Sveriges riksbanks pris i ekonomisk The Nobel Prize (Nobelpriset (Nobelprisen is a Swedish prize established in the 1895 will of Swedish chemist Alfred Nobel; it was first awarded in Peace, Literature ('stɔkhɔlm is Sweden 's Capital and its largest City. It is the site of the national Swedish government, the parliament, and the Events 1041 - Empress Zoe of Byzantium elevates her adoptive son to the throne of the Eastern Roman Empire as Michael V (21 October 1833 Stockholm, Sweden – 10 December 1896 Sanremo, Italy) was a Swedish chemist engineer innovator armaments manufacturer
References
- ^ Sveriges Riksbank/Riksbanken – History. Sveriges Riksbank (2004-03-14). "MMIV" redirects here For the Modest Mouse album see " Baron von Bullshit Rides Again " Events 1489 - The Queen of Cyprus, Catherine Cornaro, sells her kingdom to Venice. Retrieved on 2007-11-15. Year 2007 ( MMVII) was a Common year starting on Monday of the Gregorian calendar in the 21st century. Events 655 - Battle of Winwaed: Penda of Mercia is defeated by Oswiu of Northumbria.
- ^ Frequently asked questions from Sveriges Riksbank accessed on December 12, 2006
- ^ Inflation Targeting - The Swedish Experience from The Bank of Canada accessed on May 26, 2007
See also
- Economy of Sweden
- Monetary policy of Sweden
- Parliament of Sweden
- Government of Sweden
- Swedish National Debt Office
- Business Schools in Sweden
- Södra Bankohuset
External links
- (Swedish) (English) Official site of Sveriges Riksbank in English
- Historical Monetary Statistics of Sweden 1668-2008 published by the Riksbank
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