STOCKHOLM, April 28 Swedish central bank said on
Friday it opposed a government proposal to reduce the foreign
exchange reserve because it might not have sufficient buffers to
deal with a future financial crisis.
"Sweden has a large and expanding cross-border banking
sector with major commitments and funding in foreign currency,"
the central bank said in a statement.
"This poses significant risks to financial stability and
ultimately to the national economy", the bank said in a
In mid-March, the Swedish minority government said
Riksbank's currency reserve will be limited to 200 billion
crowns, below the current level of around 457 billion, although
it will have the ability to borrow up to 50 billion crowns more
if it sees the need.
(Reporting by Johan Sennero; Editing by Simon Johnson)