Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/299295 
Year of Publication: 
2024
Series/Report no.: 
Economic Memo No. 2
Publisher: 
Danmarks Nationalbank, Copenhagen
Abstract: 
The ratio of pension assets to GDP in Denmark is the highest among OECD countries. Danish pension funds invest more than half of the country's pension wealth in foreign assets, giving rise to exchange rate risks that are managed using financial instruments. We study the currency hedging behaviour of the Danish pension sector and show that it differs with respect to exposures in dollar and euro, given Denmark's fixed exchange rate against the euro. Additionally, we find a statistically and economically significant relation between US stock price movements and flows of kroner from FX rebalancing.
Subjects: 
Pension fund
foreign assets
hedging
currency risk
Denmark
Document Type: 
Research Report

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.