How did Germany pay Sweden?

Discussions on the economic history of the nations taking part in WW2, from the recovery after the depression until the economy at war.
Von Schadewald
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Posts: 1994
Joined: 16 Nov 2004 23:17
Location: Israel

How did Germany pay Sweden?

Post by Von Schadewald » 10 Mar 2015 03:15

Without gold, in what form was Germany's payment for the iron ore etc that it obtained from Sweden in WW2?

John T
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Posts: 1167
Joined: 31 Jan 2003 22:38
Location: Stockholm,Sweden

Re: How did Germany pay Sweden?

Post by John T » 10 Mar 2015 21:38

the short answer - with Polish coal and to some extent by a negative trade balance.

Sweden where well integrated with Europe so once Germany occupied most of Europe,
Germany paid Sweden among other comodities with goods they paid for at a "favourable" exchange rate from occupied countries.
And mass produced arms at high prices where one example of German (or Czeckoslovakian) manufactured good Sweden accepted.

Swedish negotiators managed to get a war trade deal i December 1939 with a fixed exchange rate and "commodity scale" so price changes from Germany side of the most important goods would cause a similar change to the price of Swedish exports. This worked most of the time except for summer of 1940 where germany i the power of strength almost doubbed the coal price. that apart Germany did not manage to fiddle with the exchange rates as they did with occupied Europe.

But basically Sweden where paid by normal trade flow.



Cheers
/John T.

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