Norges Bank will increase its daily net purchases of Norwegian kroner in the foreign exchange market to NOK 524 million in July, according to a statement from the central bank.
This represents a significant escalation in intervention activity, more than doubling the daily volume of NOK 224 million maintained throughout June.
The sharp increase in buying pressure suggests the central bank is seeking to counter upward pressure on the currency or stabilize exchange rate fluctuations ahead of the new month.
By tripling the daily intervention volume, Norges Bank is signaling a more active stance in managing the krone's trajectory compared to the previous month's approach.
This move follows a period where the central bank has been actively managing foreign exchange reserves.
The decision to ramp up purchases indicates that current market conditions require a stronger hand to maintain desired exchange rate levels.