UPDATE 1-Norway central bank cuts crown currency puchases to zero

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OSLO, Nov 18 (Businesshala) – Norway’s central bank said on Thursday it would cut its daily purchases of the crown currency to zero from 700 million Norwegian crowns ($80 million) because of expectations for massive cash flows from the country’s oil. Will give gas industry.

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The revised policy takes effect on Friday and runs through the end of November, Norges Bank said.

The central bank usually buys currency on behalf of the government on a daily basis to provide funds for the government’s financial budget, turning its oil and gas-earned currency and its sovereign wealth fund into the Norwegian crown.

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However, the recent surge in oil and gas prices has resulted in a large direct inflow of cash into Norway.

“This change is due to the reduced need for transfers from the (Sovereign Wealth Fund) to the government, as there is higher-than-expected net cash flow from the petroleum sector,” Norges Bank said in a statement.

It did not say whether there was any impact on purchases after November.

Norway is the largest oil and gas producer in Western Europe, with a daily output of 4 million barrels of oil equivalent. ($1 = 8.7697 Norwegian Crown) (Reporting by Terje Solsvik, Editing by Gvladis Foche)

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