The introduction of the euro, Norges Bank's conduct of monetary policy and quotation of market exchange rates
In the Revised National Budget for 1998, the Government affirmed that the Exchange Rate Regulation would continue to apply without any changes from 1999.
This is in keeping with Norges Bank's advice to the Ministry of Finance. Monetary policy will thus continue to be oriented with a view to maintaining a stable krone exchange rate against European currencies after the euro is introduced on 1 January 1999.
From 1 January 1999, Norges Bank's operational objective for the implementation of monetary policy will remain unchanged, with the euro replacing the ECU as the indicator of the krone's value against European currencies. The euro will be set at 1:1 against the ECU on the changeover date. The current guidelines can thus be maintained without any change in the international value of the krone, and the krone's initial range against European currencies will continue to apply.
Norges Bank has issued a new regulation for the Bank's quotation of market exchange rates, which will apply from the changeover to the euro. Under the new regulation, the ECU rate will no longer be quoted and Norges Bank will start quoting the krone exchange rate against the euro. The circular relating to the regulation can be obtained from Norges Bank.
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