The large currency-hedging needs of Swedish official institutions and companies create opportunities for the country's banks to issue securities in foreign currency and subsequently "conclude currency swaps and lend on currency to those demanding it", according to a Riksbank study.

"Instead of issuing short-term securities directly in Swedish krona, the banks have opted to convert part of their foreign funding to krona on the currency swap market so as to finance krona-denominated assets," Ida