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Swedes get set for new money, money, money

A new smartphone app is set to help Swedes navigate the biggest switch in bank notes the country has ever seen with only two months to go before the new cash is introduced.

Published: 31 July 2015 12:38 CEST
Updated: 31 July 2015 17:07 CEST
Swedes get set for new money, money, money
Christina Wejshammar of Sweden's central bank. Photo: Vilhelm Stokstad/TT

The first batch of Sweden's new currency will come into play on October 1st, with over 300 million bank notes and two billion coins to be replaced as part of the gigantic project.

“The biggest challenge is to make sure that everyone has information about what the new notes look like, when they come into effect and when the old ones expire so that you can make sure you use them on time,” the head of cash at Sweden's central bank (Riksbanken), Christina Wejshammar, told The Local on Friday.

A fresh collection of bills featuring the likes of Swedish legends like director Ingmar Bergman, actress Greta Garbo and children's author Astrid Lindgren will replace other famous Swedes such as Nobel Laureate Selma Lagerlöf, botanist Carl Linneaus and King Gustav Vasa over the next couple of years.

READ ALSO: Cashless society faces backlash from losers

To help Swedes and expats on the way, the central bank is launching a new smartphone app with a scanning function that allows user to scan the bank notes to find out if it's a new bank note or one of the old, soon-to-be outdated, ones.

“The purpose of the app is partly to inform about how the switch is going to happen, what the new bank notes look like and how you can tell that they are genuine,” explained Christina Wejshammar.


Sweden's old and new bank notes. Photo: Vilhelm Stokstad/TT

While mainly adapted for people who are visually impaired and would struggle to tell the new bank notes apart, it also serves as a reminder for anyone else who may not know their Lindgren from their Lagerlöf.

“There's a Swedish and an English version of the app as well as 30 other languages that you can use. There will also be a game as part of the app where you have to tell the notes apart as quickly as possible,” said Wejshammar.

IN PICTURES: What will Sweden's new notes look like?

The new notes were designed by Göran Österlund, whose colourful “Journey of Culture” (Kulturresan) design was selected from among eight finalists back in April 2012. 

New coins will also be in Swedish people's pockets from next year, including a brand new two kronor. A fresh set of one and five kronor coins will also be introduced, while the ten kronor coin will be the only currency that doesn't get a makeover. 

The new 20, 50, 200, and 1,000 kronor notes will be introduced in October, with the new 100 and 500 notes to arrive one year later exactly, together with the new coins.

Today's 20, 50, and 1,000 notes will no longer be valid after June 30th 2016. The current 100 and 500 will be invalid after June 30th, 2017, together with the 1, 2, and 5 kronor coins. 

Swedes have become less dependent on cash in recent years and as The Local reported in October, four out of five purchases in Sweden are made electronically or by debit card.

Researchers from Oxford University discovered in 2013 that Sweden's cash was among the filthiest in Europe, with bank notes containing more bacteria than all others across the continent. One would think that, at least temporarily, this will change when the new notes come into play.

Interview by Elin Jönsson.

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MONEY

How to protect your Swedish savings when the stock market tumbles

Recent stock market developments have made consumers in Sweden worried about the savings they have invested in the market.

Published: 5 August 2024 14:44 CEST
How to protect your Swedish savings when the stock market tumbles

Stock market volatility can be unsettling, especially when it hits close to home.

On Monday, the Stockholm stock exchange mirrored global market turmoil, with the OMXS index dropping 4.8 percent in morning trading. By 11 am, there was a slight recovery, but the index remained 2.6 percent down.

READ MORE: Stockholm stock exchange opens in the red amid global market jitters

Big names in Swedish industry weren’t spared: Boliden, a major mining company, dropped 3 percent, defence giant Saab fell 1.5 percent, and engineering firm Sandvik declined by 2.6 percent. In the banking sector, SEB took a 2.4 percent hit, while Swedbank dropped 3.6 percent.

This turbulence in the Swedish market came after significant drops in Japan’s Nikkei 225 index, which experienced its most significant one-day fall since the 1987 Black Monday Crash, and similar declines in markets across South Korea, Frankfurt, London, and anticipated losses on Wall Street.

In these uncertain times, many Swedish consumers with money invested in the market wonder whether they should do something to safeguard their savings.

Avoid impulsive decisions, expert warns

Stock market volatility can raise concerns about the safety of your savings, but according to SEB household economist Américo Fernández, there’s no need to panic.

“Should they be worried? I mean, no. I would say that this is how the stock market works: there’s a lot of uncertainty and risk connected,” he told The Local. 

“When you have savings on the global stock exchanges, this will happen, especially when we’ve had at least six months of really, really good returns – maybe even too good. Then, this is a little bit expected.

“But of course, it’s always dramatic when we have such developments in the stock market in just one or two days.”

Slow and steady wins the (investment) race

For those wondering how to protect themselves against such crashes, Fernández emphasised a consistent and steady approach to investing.

“The most common thing, the best strategy for the broad masses, is to save on a monthly basis. And this is what many Swedes do; our surveys show that 9 out of 10 Swedes save on the stock market every month. This is precisely what you should do: invest in a mutual fund, which is quite common in Sweden,” he said.

“In circumstances such as these, you buy more at a lower price, instead of timing the stock market, which is almost impossible, continue your monthly investments through mutual funds. That’s a good way of diversifying your portfolio.”

READ ALSO: Will the krona’s decline stop Riksbank from cutting rates?

Ignore the alarmist headlines

The SEB household economist also advised against reacting hastily to alarming headlines.

“Another thing that households should be aware of is that when you see alarming headlines, you should sit and calmly ride the wave out.

“It’s understandable that a lot of people are affected by herd mentality when we have these negative headlines. Everyone, but especially households with tiny savings, acts and sells, and then they buy again when the headlines are positive, when the stock exchange is at high levels…

“That is the opposite of what you should do. Try to neglect these things and be cool in these circumstances, even though it seems bad and hurts your wallet. However, if it hurts your wallet too much, that might be a signal that you have too much money in the stock market (laughs), which can be common for younger investors. Although they have had it pretty good recently,” he noted.

This advice is not only applicable to Sweden but also relevant across Scandinavia, according to Fernández.

“I think it’s applicable. Across Scandinavia, all Nordic countries save a lot of money on the stock exchange, partially because the pension system isn’t fully funded by the government,” he said.

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