Abstract
This paper examines the choice of currency in international transactions by Swedish exporting firms. Using a unique and extensive data set from the Swedish Central Bank's Settlement Reports, we model the firms' choice of export currency as a multinomial logit model. The main findings are that high exchange rate volatility reduces the likelihood of using the importers currency while high GDP and GDP per capita in the importing country increases the likelihood. A large market share of a third country increases the likelihood of using the third country's currency. A further finding is a decreased use of Swedish krona in exports and a rise in the use of the euro as a vehicle currency.