What happens when Sweden’s currency loses value compared to Norway’s currency?

Foreign Exchange MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

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Subject
Foreign Exchangeeconomics-mcqs › foreign-exchange
Published
1 Jun 2019
Last updated
28 May 2026

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Explanation

When Sweden’s currency depreciates relative to Norway’s, Norwegian exports do not become cheaper for Norwegians themselves; rather, the cost of Norwegian goods within Norway remains the same or may increase due to inflation. The correct effect is that Norwegian exports become more expensive for those in Norway.

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