JULY / AUGUST 2013 GBP/NOK average monthly historical exchange rate 14.0 13.0 12.0 11.0 10.0 09.0 08.0 May 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13 USD/NOK average monthly historical exchange rate
by just over 10% and it is currently around the 7.50 level, whereas the US dollar has weakened by nearly 20% and we are currently around the 5.6 level. Quite clearly, the krone has been in the ascendancy. Against all three currencies, the krone has been reasonably steady over the last couple of years, especially when compared with the movement during the fi nancial crisis. Best expectations are probably for this to continue as the world slowly digs itself out of the hole it fi nds itself in. It’s diffi cult to see any upside for these three currencies against the Norwegian krone, given its fi nancial strength. However, this may change if Norway decided that its exports are suff ering unduly due to the strength of the krone.
It is always easier for a strong currency to be undermined by its government rather than be talked up when weak. However it is diffi cult to believe such a policy would have long-term success here given the strength of Norway’s fi nances. The counter thought- process is that we don’t expect the krone to strengthen signifi cantly, as it will damage Norway’s exports which would be politically diffi cult. In conclusion: steady as she goes for the krone in the current economic climate.
07.0 06.5 06.0 05.5 05.0 04.5 04.0 Jan 04 Jan 05 Jan 06 Jan 07 Jan 08 Jan 09 Jan 10 Jan 11 Jan 12 Jan 13
Cold country, hot economy “I call it a cold country with a hot economy,” says Lithuanian estate
agent Jurga Skrabulyte from
www.yourholidayhomes.com. “The Norwegian overseas property market is very active, whether this is due to the strengthening krone or not. We’ve been selling there for ten years and have found that Norwegians tend to go directly to the developer or agent or online, rather than to exhibitions, and rent before they buy.” Spain, USA, Turkey and Thailand are all popular, but so is closer to home, buying just over the border in Sweden and Denmark. “The Norwegians like to own a cabin in the mountains. We did an exhibition near Oslo that appealed to that market, but was no good for us,” says Said Marie, owner of Caversham Barnes (
www.caversham-barnes.com), in Crete. “Nevertheless, the Norwegian market is great. It’s outside the eurozone so that helps, the krone is strong, the economy is going well, they pay lots of tax but seem to have plenty left over. We’ve a lot of faith in the Norwegian market and are doing another exhibition in January.”
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