A debt milestone for Denmark.
The country will pay off its last foreign currency loan worth $1.5bn today – ridding itself of any FX debt obligations for the first time in at least 183 years.
Data from the Danish central bank shows the last time the central government was near paying off all its foreign currency loans was back in 1894 – when FX debt totaled less than 1 per cent of GDP.
The country first raised its foreign debt in 1757 when it issued a loan worth half a million rigsdaler from Germany and the Netherlands.Historically, Denmark has raised foreign currency debt to bulk up its FX reserves but vast amounts of currency intervention in recent years – designed to keep a lid on its krone peg with the euro – led Danish FX reserves to hit an all-time record back in 2015 (see chart below).
“The central government has …