Small import companies are tamped with the weak krona

Brexit, trade war and conflicts; there is a lot that is causing concern in the international economy right now.

The Swedish krona has fallen sharply in value in recent years, which has made it expensive for Swedish companies to import goods from, for example, Europe and the US.

One of the industries that has been hit hard by the crown breed is the wine industry.

- The changes we have seen lately are on the order that they eat up the entire profit margin, says Magnus Holmgren, who has many years of experience as a wine importer and continues:

- This has led some companies to deliver goods to Systembolaget at a loss.

Both banks and the industry now state that the concern about exchange rates has led to an increasing number of companies choosing to hedge their transactions, that is, buying insurance to protect themselves from rapid changes in the foreign exchange market.

- We have seen an increased interest from especially small and medium-sized companies over the past year, says Kristin Magnusson Bernard, who is Sweden's manager at Nordea Markets.

Günther Mårder is the CEO of the interest organization Företagarna and believes that currency hedging can prevent companies from expanding.

- If you take out insurance to eliminate movements in the foreign exchange market, it will increase the company's costs over time. It reduces both the ability to invest and the ability to hire, he says.

- The alternative is to build up financial buffers yourself that make it possible to manage individual quarters or years when the exchange rate plays to your disadvantage, says Günther Mårder.