Norway currency exchange rate prompts jobs worries / News / The Foreigner

Norway currency exchange rate prompts jobs worries. NEWS IN BRIEF: The Norwegian kroner experienced one of its highest exchange rates since the 1980s this week, after investors flocked to the currency considering it a safer option. A recent survey by the Norges Bank also showed that 70% of economists had faith that the exchange rate would rise over the next 12 months with only 6.7% thought it would weaken. Whilst Norwegian tourists benefit on holidays abroad, however, a high kroner is not good news for jobs or the country’s export industries.

norwegiankronerstrength, exportindustryworries, norwayjobconcerns



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Norway currency exchange rate prompts jobs worries

Published on Friday, 9th September, 2011 at 11:10 under the news category, by Lyndsey Smith and Michael Sandelson      .
Last Updated on 10th September 2011 at 17:35.

NEWS IN BRIEF: The Norwegian kroner experienced one of its highest exchange rates since the 1980s this week, after investors flocked to the currency considering it a safer option.

Norwegian currency
Norwegian currency
Photo: chezzzers/IStockphotos


A recent survey by the Norges Bank also showed that 70% of economists had faith that the exchange rate would rise over the next 12 months with only 6.7% thought it would weaken.

Whilst Norwegian tourists benefit on holidays abroad, however, a high kroner is not good news for jobs or the country’s export industries.

Statistics Norway forecasts possible slower economic growth than previously thought and 4,500 jobs could disappear in the next three years.

Kverneland Group’s CEO Ingvald Lønning, whose company exports approximately 4,400 ploughs to EU-country farmers, urges Norwegian financial authorities act.

Suggesting Central Bank governor Øystein Olsen fix the Kroner-Euro exchange rate, like authorities did with the Swiss Franc earlier this week, he tells Dagens Næringsliv, “It’s a good solution. Huge swings in the Krone’s R.O.E. are now creating problems with dramatic importance for us.”

“The effect on our Klepp-based business’ pre-tax operating result write-off is between five and eight million kroner for every 10 øre the Kroner strengthens.”

Kverneland’s biggest owner Jens Ultveit Moe, whose own firm sells lifeboats abroad, says, “The strong Krone is killing our business. It’s no less than a catastrophe for the export market. Margins are suddenly reduced from, say, five percent to nothing.”



Published on Friday, 9th September, 2011 at 11:10 under the news category, by Lyndsey Smith and Michael Sandelson      .
Last updated on 10th September 2011 at 17:35.

This post has the following tags: norwegiankronerstrength, exportindustryworries, norwayjobconcerns.





  
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