Debt Office to phase out foreign currency exposure of government debt

News 11 November 2022

The Swedish Government has adopted guidelines for the management of the central government debt. The decision for 2023 is in accordance with the Debt Office’s proposal and means that the foreign currency exposure of the debt will be phased out gradually over four years.

The guidelines include target levels for the composition and the duration of the debt. The overall objective of central government debt management is to minimise the cost of the debt over the long-term while taking risk into account.

The Government’s decision is based on the Debt Office’s analyses showing that the foreign currency exposure of the central government debt entails a higher level of risk without reducing the cost of the debt over time. The phasing out of the foreign currency exposure will not affect the Debt Office’s ability to raise loans in foreign currency.

Guidelines for debt composition and maturity

  • Foreign currency exposure: phasing out from the beginning of 2023 until the end of 2026 and then a target level of zero as of 2027.
  • Inflation-linked krona debt: 20 per cent (long-term) of total debt.
  • Nominal krona debt: residual.
  • Maturity (in terms of duration) of total debt: within range of 3.5–6 years.

Government’s press release and guidelines

Debt Office’s proposed guidelines