Record-high payments of petroleum tax in October 2022, and the accompanying fall in structural liquidity, resulted in a marked rise in the shortest-term Norwegian money market rates. In this staff memo we describe how petroleum tax payments affect liquidity in the banking system and discuss why...

In recent years, the liquidity premium between the Norwegian krone (NOK) and the US dollar (USD) in the FX swap market, the so-called OIS basis, has accounted for a larger share of the Nibor premium than earlier. This has been attributed by several to low structural liquidity and banks'...