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11 Mar 2015
EUR/DKK peg will remain unaltered – Danske Bank
FXStreet (Edinburgh) - Analysts at Danske Bank emphasized the central bank position to do ‘whatever it takes’ to sustain the current peg.
Key Quotes
“Recently, Denmark has received substantial attention due to the appreciation pressure on the Danish krone”.
“Denmark has had a very tight fixed exchange rate system since 1982 (first against the Deutschmark and since 1999 against the euro) and the peg is a key element of economic policy in Denmark”.
“The Danish central bank has countered the recent appreciation pressure by multiple rate cuts and FX intervention”.
“Denmark will not leave the peg as the peg is a political decision that enjoys full support across the political parties”.
“The Danish central bank will continue to use its conventional measures (rate cuts and intervention purchases) in order to counter the appreciation pressure going forward. The Danish central bank has expressed that it will do ‘whatever it takes’, which includes introducing new unconventional measures if necessary”.
Key Quotes
“Recently, Denmark has received substantial attention due to the appreciation pressure on the Danish krone”.
“Denmark has had a very tight fixed exchange rate system since 1982 (first against the Deutschmark and since 1999 against the euro) and the peg is a key element of economic policy in Denmark”.
“The Danish central bank has countered the recent appreciation pressure by multiple rate cuts and FX intervention”.
“Denmark will not leave the peg as the peg is a political decision that enjoys full support across the political parties”.
“The Danish central bank will continue to use its conventional measures (rate cuts and intervention purchases) in order to counter the appreciation pressure going forward. The Danish central bank has expressed that it will do ‘whatever it takes’, which includes introducing new unconventional measures if necessary”.