Jim Rogers Owns NOK

By J.K. Baltzersen
Jim Rogers: Adventure Capitalist

Jim Rogers: Adventure Capitalist

Legendary investor James B. Rogers has lately said that he has gotten out of the Pound Sterling. He advises others to do the same. In doing so, he refers to the North Sea “drying up.”

Wanting to know what Jim Rogers thinks about the Norwegian economy and its currency – the Norgegian Crown (NOK), we asked him.

He tells us that he has owned Norwegian Crowns for some time.

He refers us to the raw materials index fund he started back in 1998. He tells us it is up about 100 % since then.

We assume the North Sea “drying up” does not refer so much to the Norwegian continental shelf as it does the British.

We do see some sound fundamentals in the Norwegian economy. There is a trade surplus. There have been a government budget surplus for several years. The Norwegian government is a net creditor.

The Central Bank of Norway was relatively late at cutting the key policy interest rate. The Central Bank Governor recently asked consumers to prepare for higher interest rates. The key policy interest rate is now at 2.50 %.

Last June Paul Kasriel of the Northern Trust Company envisioned the NOK as the possible next reserve currency. That, however, was before the Central Bank of Norway caved in to political pressure and started cutting the key policy interest rate.

The sound fundamentals of the Norwegian economy notwithstanding, we wonder whether the Central Bank of Norway will make serious attempts at keeping the NOK from rising against the USD.

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One Comment

  1. Olof
    Posted 19 February, 2009 at 8:32 am | Permalink

    He also said in a CNBC interview not too long ago that he owns SEK. He spreads the risks quite well.

    Nevertheless I am converting a large portion of my SEK to NOK. I am afraid of what will happen if there is a collapse in the Baltic region. USD and gold have risen too much so I am not buying into those.