Currency distribution and forward cover in foreign trade: Sweden revisited, 1973

New data on currency distribution in Sweden's foreign trade payments for 1973 are presented and compared with data from an earlier survey for 1968. The basic pattern remains unchanged, invoicing being predominantly made in local currencies. The limited use of U.S. dollars, and other third-country currencies, has remained approximately the same over the five-year period, though with a marked shift from pounds to dollars and D-marks. Both the 1968 year of fixed parities and the 1973 year of floating exchange rates display a symmetric payments system, without any particular currency playing the role of ‘international money’ in private transactions. Data are also supplied for the total volume of forward transactions in Sweden from 1966–1974. As anticipated in foreign exchange theory, forward covering of trade payments has increased sharply since the floating of exchange rates in 1973.