Securing cash supply in Sweden and increased responsibility for the Riksbank
The new year begins with important news about Sweden’s monetary policy; not only does Erik Thedéen take over as the new Governor of the Riksbank, but the new Riksbank Act came into force on 1 January 2023.
According to the new law, the Riksbank must:
The Riksbank wants to make it possible for actors who are not banks also to be able to enter into agreements for the collection and delivery of cash in the Riksbank’s Cash Depots, and it will then also be possible for the actors to enter into agreements on interest expense compensation from the Riksbank. The Riksbank is doing this to secure a cash supply in Sweden. (1)
This is a major change given Sweden’s usually strict monetary policy.
Loomis Sverige AB is the only actor that offers cash management and is allowed to work with the Riksbank. Loomis meets the requirement that the company be a bank or owned by a bank. Loomis acquired Nokas värdehantering AB in 2020, and during the time of the sale, the then-head of Nokas Värdehantering AB said there was no room for two actors in the Swedish market.
This deal then led to a monopoly in the market. As of now, it can be said that the entire cash payment system is based on Loomis: a private commercial institution.
Even the company ClearOn, which offered cash management services, decided to liquidate Kassagirot. Kassagirot was a payment service solution for cash management of bill payments, account deposits, card withdrawals and daily cash. The newly appointed Governor of the Riksbank, Erik Thedéen, says: “I look forward to my new assignment as Governor of the Riksbank and to taking on the challenges we face. We are in a very special economic situation where monetary policy is more topical than it has been for a long time. This also raises questions about financial stability at the same time as the development of the payment market is moving at a rapid pace. From 1 January, the Riksbank has also been given a new responsibility regarding civil preparedness for payments, which means that the public will be able to make payments in both peacetime crises and during heightened preparedness”. (2)
Tavex welcomes the announcement from the Riksbank to ensure the cash supply in Sweden.