‘Massive Inflow’ Feeds Currency Surplus Gnawing at Denmark’s Peg
- Danish current account surplus is now approaching 10% of GDP
- Government says it won’t intervene to address imbalance
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It’s not easy maintaining a fixed currency regime when you have one of the biggest current account surpluses in the rich world.
In AAA-rated Denmark, where the central bank defends the krone’s peg to the euro, a surplus approaching 10 percent of GDP is becoming a long-term headache.