I've been trying to find the HSBC report mentioned here, but haven't had any luck. I'm not entirely certain I would put all my money on this recommendation, as our currency is small and insignificant from a worldwide perspective - but anyway I thought I'd just post this for info:

Quote:

Mirror, Mirror on the Wall, Who’s the “Best Looker” of Them All?

By Chuck Butler, Editor
www.worldcurrencywatch.com

Long-time readers know my affection for the surplus/positive balance of payment countries and their respective currencies. Well, Norway always drifts to the top of those discussions because of their impressive balance sheets.

But then last night I came across a report by the research team at HSBC that graded the currencies. Their pick for best currency? Norwegian krone!

Let’s listen in to what the HSBC researchers are saying…

"The world is in total flux and, as such, we have released our new interim forecasts for the global economy today. Based on these numbers, which make depressing reading, we look at who comes out the best amongst the G10. We give all the variables an equal weight.

“We could have quite easily given CDS spreads a higher weight, which we believe is a key driver of the FX market at the present time, but even with equal weights the answer is still the same - Norway wins hands down.

“In addition, the Japanese yen and the Swiss franc are both losing their safe haven status and the best safe haven currency is the Norwegian krone. The Norwegian krone is our preferred G10 currency where we expect a sustained appreciation over the next 18 months."

So, my colors are already pinned to Norway's mast. This is simply a choice based on the country’s excellent fundamentals and booming surplus. It has been, and will continue to be, until something changes...

An Insider Look at the Original Surplus Country

By the way, I first wrote about the surplus countries being at the top of my currency list way back in 2006. And I wrote about how surplus countries looked to withstand this credit crunch back in October in my monthly newsletter, Currency Capitalist.

And which surplus country did I mention both times? Norway!

Here’s a snippet of what I told my Currency Capitalist members six months ago…

“Norway, with their North Sea Oil, has a very healthy balance sheet. In fact, it’s so healthy that policymakers are creating one of the most enviable pension plans on earth. They actually have enough money in this mega-pension fund to guarantee every citizen receives a pension — including the next generation of Norwegians who aren’t even born yet!

“Norway’s Central Bank…now takes their place among the world’s most influential central bankers and provides price stability and effectively fights inflation.”

Looking back today, a currency like the krone really needs the euro to be underpinned for the krone to outperform the single unit. So, all I'm really saying here is that the dollar isn't the "Best Looker" in the currency world right now. That claim to fame belongs to the Norwegian krone.

http://crooksblog.sovereignsociety.com/2....

This is plagiarism. I wrote the same stuff last month.

I swear, a guy can't get any respect around here.....

Quote:

They actually have enough money in this mega-pension fund to guarantee every citizen receives a pension — including the next generation of Norwegians who aren’t even born yet!

Now that is interesting. I'm getting tired though of people discovering my secret places to stash money.

I wonder what their immigration laws are??

NOK????? NOK is Nokia, which is hdqtrd in Helsinki. That's Finland.

Quote:

I wonder what their immigration laws are??

The government will welcome you with open arms and nearly unlimited welfare checks if you are:

a) Drugdealing asylumseeker
b) Psychotic asylumseeker
c) Knifewielding asylumseeker
d) Islamist asylumseeker
e) Preferably a combination of all of the above

Lawabiding, culturally compatible, mentally stable, educated and fit for work? Oh well - just pretend you're an asylumseeker, that should do the trick.

Just a pity that the fund is heavily invested in US equities like Chitty-City-bang-bang etcetera. Can't wait till they blow it all away.

Sniffmom, do you have any color on your home duckets? I`m upside down through the book. I thought NOK would hold it`s own vis a vis the dollar (mostly because of Norways aboility to issue sov. debt in NOK) but I fear I am wrong. We appear to be at resistance, does that mean anything anymore, anyone , Clarence, Bueller?

Openwater,

I'm afraid you have to explain the expression "color on your home duckets". That's unfamiliar to me.

Over the last two days, NOK has been rising a fair bit towards a lot of the major currencies.

Only today, atm the other currencies are down more than 1% against NOK, while dollar being the weakest, down over 3%.

Some pretty wild swings in the currency market there.

http://www.hegnar.no/okonomi/valuta/

it's VIKING POWER!!!

well the Norwegians are just going to love that!

Sniffmom, sorry, duckets (ducats)=ancient term for units of money, Italy 14thc?
Color= idea about, opinion on.

Openwater,

Aha! Then I learned a totally new (to me, anyway) expression today! Thanks!

It seems NOK keeps rising along with the price of oil. Heck, USD/NOK is down by about 1.5% just since I shipped a donation to upgrade from green to gold a couple of hours earlier today! Had saved a few dimes if I had waited until now, but I really needed to read ticks before our local market closed.

The dollar has come down quite a bit since I started this thread. I honestly don't know what it's gonna look like towards NOK if oil falls.

There's also another little thing this week - our CB will announce its' rate decicion on Wednesday March 25th. Depending on what they're doing, we could see some changes. Most expectations are for a rate cut of .50bps. Some analysts suspect only half of that. Guess that also could influence NOK to some extent.

Thanks Sniffmom, I had been expecting this rally in NOK, and was short the pair for several months up until 3 weeks ago, when I got shook out at 7.25. I feel like such a dummy. I`ve been expecting this for months, and missed the whole ride. Do you have any idea if foreigners can open bank accounts in Norway? Do you reccomend particular bank? Do you smell like ferrets?

Do I smell like ferrets? No, but Sniff certainly does.

Yes, I think you can open an account in a Norwegian bank. That would prolly be easiest done by contacting DnBNOR, our largest bank, they have offices in the US. The bank is partly owned by the Norwegian state (34%) and I saw it was among the 50 safest banks on the list in a thread in the Contrib-forum. All deposits in Norwegian banks are insured by the state for up to NOK 2 million (approx USD 300k).

Since Norway is as far as you can get from a tax haven, all deposits from foreigners will be disclosed to their local tax authorities.

The information says the branch in New York is for corporate customers, but I have asked the bank once earlier about private people opening accounts with them, and at that time they said it was possible.

https://www.dnbnor.com/about_the_group/i....

I appreciate your reply.

Sniff, can I jump on a boat and come open an account with a Norwegian branch of a Norwegian bank, while resident in the UK? On a clear day, I can look out of my bedroom window and see Norway, so it seems a shame not to have a bank account there.

Love the new avatar Clarence!

Clarence,

If your're a UK citizen, you're entitled to reside in Norway and look for work for 6 months without needing a residence permit. Considering this, initially I should think opening an account here wouldn't pose much of a problem. However, I'm not certain what the response would be if you said you were here just as a short time tourist.

Maybe check with the UK branch of DnBNOR first, before you set sail across the pond? Unless, of course, you wanna do the trip anyway, just to come over and share a few beers. :)

https://www.dnbnor.com/about_the_group/i....

Merk was on BBTV several weeks ago, making the same, surplus-is-good argument for the Krone.

http://news.yahoo.com/s/ft/20090316/bs_f....

Quote:

View of the Day: Seek safety in Norway's krone

By Axel Merk – Mon Mar 16, 10:55 am ET

The Norwegian krone might become the new Swiss franc as investors seek a haven from the turmoil engulfing the global economy, argues Axel Merk of Merk Investments.

"The world's a mess and in our eyes policymakers are inadvertently doing their best to worsen a bad situation," he says. "We are in a period where a depression, if not a long and drawn-out recession, is a very realistic probability. Where can investors hide?"

Mr Merk believes that recent actions by the Swiss National Bank have diluted the franc's status as a haven currency.

"Investors put their money in Switzerland because of its safe haven appeal," he says. "Now, the SNB intervenes in the currency markets to erode trust in the franc. The SNB is also more vulnerable as it engages in unconventional policies, from swap lines for eastern Europe to the issuance of US dollar-denominated Swiss Treasury bills."

Mr Merk believes that Norway may replace Switzerland as the place to take refuge in Europe.

"Norway is a surplus country - an enviable position to be in should we face an extended depression - and it can afford to get through this crisis.

"The krone is not particularly 'sexy'; if the markets recover, risk-friendly money may move towards other currencies again.

"However, in our assessment, the Norwegian krone may be the most appropriate depression trade."

I don't follow FX, but it seems worth noting that, as a depression trade, Merk would find Norway's surplus a benefit that would outweigh the country's oil/gas exposure (which goes unstated in this essay). Perhaps the overriding factor in his arguement is that Norway's oil/gas exposure a lesser evil than the risk posed to Switzerland by its financial institutions.

Argos,

Thanks. Interesting to see more views on the NOK.

Major dump for NOK today, after the CB cut by .50bps. The cut was expected. What was not so much expected was the CB signalling further cuts down the line, to avoid having significantly higher interest rates than our trade partners. Local analysts sounded surprised, as many of them had forecast only a .25bps cut and then the end of the cutting.

They were also saying something about not wanting NOK to become strong and a safe haven.

They should use it create a manufacturing industry. Print a bit of money up to soak up a little of the wealth of foreigners hiding there, cut some taxes to return it to the residents and use it to invest in things that will make the country an economic powerhouse in the future. Compete with the IMF for the world's new reserve currency