I can also mention that the Governor of the Riksbank appears before the Riksdag Committee on Finance twice a year for a discussion on monetary policy. In addition, we Executive Board members hold around thirty speeches a year, in which we present our own views of the economic situation. All this means that there is ample opportunity for the general public to obtain an understanding of how monetary policy decisions are made and it creates conditions for a serious debate. In the long term, this reinforces the Riksbank’s credibility and legitimacy. How do we work with financial stability? As I said earlier, the Sveriges Riksbank Act states that we shall also promote a safe and efficient payment system. In other words, we are to safeguard financial stability. The Riksbank was the first central bank to publish a report containing a coherent analysis of financial stability in 1997, and we have published these reports twice a year since then. Other countries were more hesitant in speaking openly about the stability of the financial system. Some considered it impossible to be open on such issues if a crisis were to occur, while the Riksbank’s attitude was that openness also benefits financial stability. By discussing risks and vulnerabilities at an early stage, crises could be avoided. In addition, we had positive experiences of openness in the price stability field. It appears as though our method of working with financial stability has set a good example. Today around thirty countries have followed.
This is the first time we intervened in the foreign exchange market since 1999. Relatively quickly after the interventions, the market began to function more normally. 1/4  BIS central bankers' speeches  Later in spring, the krone appreciated on the back of a rise in oil prices and reduced uncertainty in global financial markets. Recently, oil prices have been broadly at the same level as at the beginning of 2020, and the krone is somewhat stronger than prior to the Covid-19 outbreak. In spring 2020, risk premiums in the Norwegian money market rose considerably. Norges Bank took a range of measures to improve market liquidity and ensure pass-through of a lower policy rate to money market rates and bank lending rates. Among other things, Norges Bank offered banks extraordinary liquidity in both NOK and USD. In advance of the monetary policy meeting in May, financial market stress subsided and premiums in both the money and bond markets fell. The normalisation of liquidity policy is well underway. By the end of August 2021, all extraordinary loans from Norges Bank to banks will have been repaid, and the relaxation of collateral requirements for loans from Norges Bank will be reversed. Downturn in the Norwegian economy Activity in the Norwegian economy fell abruptly in 2020 Q2. The Covid-19 outbreak and extensive containment measures led to production halts and lower activity across a range of businesses. Mainland GDP was around 11 percent lower in April 2020 than in February the same year. Many employees were furloughed or made redundant.