Denmark Pledges Limitless FX Interventions to Save Its Euro Peg
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There is “no limit” to how much Denmark can hoard in foreign currency reserves to defend its euro peg, according to the central bank.
After selling a record 106.3 billion kroner ($16.4 billion) last month, central bank reserves are now equivalent to about 30 percent of the country’s gross domestic product. The level poses no risks and is a reflection of how Denmark’s exchange-rate regime is designed to work, Karsten Biltoft, head of communications at the central bank in Copenhagen, said in a phone interview.