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Norway Today

Norwegian news in English

Saturday, November 23, 2024

Norwegian Krone Hits Record Low

Published: 2024-07-30

The Norwegian krone has reached its weakest point in over 40 years, with alarming exchange rates of 14 kroner for the British pound and 12 kroner for the euro.

This decline has sparked discussions among economists about potential solutions, including the possibility of Norges Bank raising interest rates to strengthen the currency.

However, LO economist Roger Bjørnstad warns that higher rates could burden households already struggling with debt.

He suggests exploring alternative measures, such as using the Government Pension Fund to buy kroner.

Meanwhile, many Norwegians are still planning vacations abroad, despite the rising costs due to the weak currency.

The debate continues on how to address the krone's decline without harming the economy further.