The European Central Bank (ECB) and Norges Bank signed an agreement for Norway to join the Eurosystem’s TARGET Instant Payment Settlement (TIPS) service.
This will reportdly make the Norwegian krone the fourth currency available for settlement in TIPS, along with the euro, the Swedish krona and the Danish krone, which is “scheduled to join in April 2025.”
The inclusion of the Norwegian krone in TIPS, which is part of the Eurosystem’s TARGET Services, is planned for the first half of 2028 and will enable market participants in Norway to “settle payments instantly, around the clock and in central bank money.”
Norwegian citizens and businesses will therefore become “part of the European community of TIPS service users.”
The work towards implementing a cross-currency settlement service in TIPS, allowing funds to be transferred “between all TIPS currencies, will also encompass the Norwegian krone.”
ECB President Christine Lagarde after signing the agreement said that they are delighted that Norway will “use the Eurosystem’s TARGET Instant Payment Settlement service for instant payments in Norwegian krone.”
Lagarde also noted that Norway is the first non-European Union country of the European Economic Area to “join one of the Eurosystem’s TARGET Services. It is an indication of the strengthened economic relations across Europe and the attractiveness of TIPS.”
Norges Bank’s Governor, Ida Wolden Bache, said that a well-functioning instant payments solution is “an important part of an efficient payment system.” They added that the agreement with the ECB will ensure that infrastructure “for instant payments in Norwegian krone is developed in pace with developments in the Nordic countries and the rest of Europe.”
TARGET Services are developed and operated by the Eurosystem and rely on central bank money to facilitate “transfers between banks, businesses and individuals.”
All TARGET Services have “multicurrency” capabilities.
TIPS, which operates around the clock, reportedly settles instant payments in two currencies, the euro and the Swedish krona, and will “also settle in Danish krone as of April 2025.”