A krona or krone instead of euro?

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pic foter.com
Polish companies which trade with Scandinavian countries more and more often resign from settlements in dollars or euro to the benefit of local currencies, for instance, a Swedish krona or Norwegian krone. Companies from SMEs sector exchange even one million of krona or krone every month.

We are going to extend our offer concerning Scandinavian currencies in the nearest months. At the moment, we introduced a Norwegian krone in response to expectations of our clients. Moreover, we are planning to introduce a Swedish krona too – points out Marek Paciorkowski, chairman for financial markets of Aforti Exchange, a company which is thinking about offering a Czech currency except for a Swedish krona, which results from the increase in activity of enterprises in neighboring countries, that is Scandinavia and Czech Republic. Companies have to adjust their foreign trade to exchange of such currencies while carrying out a transaction in a local currency. 


Norwegian krone and Swedish krona are in some way safer currencies than zloty because they concern more developed economies. However, they are equally exposed to external factors because economies of those countries are much smaller than economy of the European Union, which yet is still experiencing a crisis – believes Paciorkowski.    


A Norwegian krone was introduced at the turn of November and December, whereas other currencies will be introduced in the first quarter of 2015. Aforti Exchange is also considering a Russian rouble in its portfolio, however, the realization of this plan may be delayed due to unstable situation in Russia. A longer plan related to introduction of a rouble results from the fact that we have been dealing with a very strong depreciation of this currency. We assume that it was a very strong speculative market behavior. Now we may see a certain stabilization of the currency and the nearest quarter will show what is the real appraisal of this currency in a technical aspect – comments chairman for financial markets of Aforti Exchange. – Enterprises have to adjust theirs businesses to such a behavior of currency. Therefore, a much earlier introduction is simply too risky. 


As the expert claims, the demand for Norwegian krone and Swedish krona totals jointly dozens or even hundreds of millions of these currencies. Currently, small and medium enterprises exchange volumes of even million krone every month. According to him, the potential of such currencies is still increasing because some companies which used to settle with Scandinavia in dollars choose now a Swedish krona or Norwegian krone.


It is an alternative for trade with the European Union or Russia. Therefore, we are observing that more and more companies follow this direction, especially that it is a not a market which is fully penetrated by enterprises – judges Marek Paciorkowski. – Hence, we also have a chance because we know that the opposition does not have such a regular exchange in these currencies in their offers, whereas we also make use of analysis section which helps clients in making a decision about the moment of exchange which is crucial to profitability.


According to expert, the fluctuation of krone and krona is very high due to a size of the market which is smaller than dollar or euro markets. However, these fluctuations have been recently comparable because generally the markets are unstable and the whole capital is aiming at a safe haven. The trends used to be a few years old in the past, whereas now we may sometimes experience situations when within few months there is a complete transfer of capital from euro to much risky currencies like zloty or krone as well as krona and after a couple of months they return to a dollar again – explains Marek Paciorkowski.   


According to last year's report prepared by strefawalut.pl, the turnover increased from 3,2 billion zlotys to almost 20 billion zlotys in e-exchange offices in the years 2011-2013. It is i.a. a gleanings of several times smaller spread at exchange in the Internet and appreciation of comfort and quickness of such transactions by Poles.

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