Annual Report on Exchange Arrangements and Exchange Restrictions 2005
Chapter

SWEDEN

Author(s):
International Monetary Fund. Monetary and Capital Markets Department
Published Date:
September 2005
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(Position as of February 28, 2005)

Status Under IMF Articles of Agreement
Article VIIIDate of acceptance: February 15, 1961.
Exchange Arrangement
CurrencyThe currency of Sweden is the Swedish krona.
Exchange rate structureUnitary
Classification
Independently floatingThe exchange rate of the krona is determined on the basis of supply and demand in the foreign exchange market.
Exchange taxNo.
Exchange subsidyNo.
Forward exchange marketYes.
Official cover of forward operationsSveriges Riksbank—the central bank—and certain government agencies participate in the forward exchange rate market.
Arrangements for Payments and Receipts
Prescription of currency requirementsNo.
Payments arrangementsNo.
Administration of controlNo.
International security restrictions
In accordance with IMF Executive Board Decision No. 144-(52/51)In accordance with UN Security Council resolutions and the relevant EU regulations, measures have been taken to freeze the accounts of listed terrorist groups.
In accordance with UN sanctionsIn accordance with EU regulations and the relevant UN Security Council resolutions, certain restrictions are maintained on transactions with respect to natural and legal persons, public bodies, and entities related to the previous government of Iraq; Myanmar; certain individuals associated with the previous government of the former Republic of Yugoslavia and individuals indicted by the International Criminal Tribunal for the former Republic of Yugoslavia; the individual members of the government of Zimbabwe; the former president of Liberia; and any natural and legal persons associated with them. Financing of and financial assistance related to military activities in Somalia, the Democratic Republic of the Congo, and Sudan are prohibited. Restrictions also apply on transfers with respect to the Taliban and individuals and organizations associated with terrorism.
Payments arrearsNo.
Controls on trade in gold (coins and/or bullion)No.
Controls on exports and imports of banknotesNo.
Resident Accounts
Foreign exchange accounts permittedYes.
Held domesticallyYes.
Held abroadYes.
Accounts in domestic currency held abroadYes.
Accounts in domestic currency convertible into foreign currencyYes.
Nonresident Accounts
Foreign exchange accounts permittedYes.
Domestic currency accountsExternal krona accounts may be held by nonresidents domiciled abroad, including persons who have become nonresidents after emigrating. These accounts may be used for payments and transfers and may be converted into any foreign currency.
Convertible into foreign currencyYes.
Blocked accountsNo.
Imports and Import Payments
Foreign exchange budgetNo.
Financing requirements for importsNo.
Documentation requirements for release of foreign exchange for importsNo.
Import licenses and other nontariff measuresImports of most iron and steel products from countries outside the EU are subject to licensing for surveillance purposes. Effective January 1, 2005, licensing for surveillance purposes on imports of textiles and clothing from about 20 countries and on imports of shoes from Vietnam is abolished. Effective January 1, 2005, imports of textiles and clothing from China are subject to licensing for surveillance purposes. Effective February 1, 2005, licensing for surveillance purposes applies to imports of shoes from China.
Licenses with quotasAgricultural and fishery products are subject to import licensing. Some iron and steel products from Kazakhstan, Russia, and Ukraine are subject to quotas. Effective January 1, 2005, with the expiration of the WTO Agreement on Textiles and Clothing, the quotas on imports of textiles and clothing from WTO member countries (including China) are abolished. Previously, the importation of textiles and clothing from about 20 countries was subject to quotas. Effective January 1, 2005, imports of porcelain and shoes from China are no longer subject to quotas.
Other nontariff measuresImport restrictions apply to certain categories of food, as well as to narcotic drugs, weapons, live animals, radioactive materials, and other items.
Import taxes and/or tariffsAlcohol, tobacco, and mineral oils are subject to import taxes and customs duties.
State import monopolyNo.
Exports and Export Proceeds
Repatriation requirementsNo.
Financing requirementsNo.
Documentation requirementsNo.
Export licenses
Without quotasYes.
Export taxesNo.
Payments for Invisible Transactions and Current Transfers
Controls on these transfersNo.
Proceeds from Invisible Transactions and Current Transfers
Repatriation requirementsNo.
Restrictions on use of fundsNo.
Capital Transactions
Controls on capital transactionsYes.
Controls on capital and money market instrumentsControls apply only on purchase locally by nonresidents of shares and other securities of a participating nature and of money market instruments.
On capital market securities
Shares or other securities of a participating nature
Purchase locally by nonresidentsYes.
On money market instruments
Purchase locally by nonresidentsYes.
Controls on derivatives and other instrumentsNo.
Controls on credit operationsNo.
Controls on direct investment
Inward direct investmentLaws on inward investment and establishment apply to investment in fishing, civil aviation, transportation, and communications.
Controls on liquidation of direct investmentNo.
Controls on real estate transactions
Purchase locally by nonresidentsA permit may be required.
Controls on personal capital transactionsNo.
Provisions specific to commercial banks and other credit institutions
Investment regulations
Abroad by banksYes.
Open foreign exchange position limitsFor prudential reasons, general guidelines exist for credit institutions’ and securities firms’ net positions in foreign currencies. These guidelines stipulate limits both on positions in a single currency—15% of the capital base—and on the total net position of all currencies—30% of the capital base.
On resident assets and liabilitiesYes.
On nonresident assets and liabilitiesYes.
Provisions specific to institutional investors
Currency-matching regulations on assets/liabilities compositionThe same provisions apply as for open foreign exchange position limits.
Other controls imposed by securities lawsNo.
Changes During 2004
No significant changes occurred in the exchange and trade system.
Changes During 2005
Imports and import paymentsJanuary 1. Imports of textiles and clothing from China were made subject to licensing for surveillance purposes.
January 1. The quotas on imports of porcelain and shoes from China were abolished.
January 1. Licensing for surveillance purposes on imports of textiles and clothing from about 20 countries and on imports of shoes from Vietnam was abolished.
January 1. With the expiration of the WTO Agreement on Textiles and Clothing, the quotas on imports of textiles and clothing from WTO member countries were abolished.
February 1. Imports of shoes from China were made subject to licensing for surveillance purposes.

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