Central Bank purchase of offshore króna assets
Since 12 March 2017, the Central Bank of Iceland has bought offshore króna assets in two stages for a total of 112.4 b.kr. at an exchange rate of 137.5 krónur per euro. On 12 March, the Central Bank announced an agreement for the purchase of offshore króna assets as these are defined in the Act on the Treatment of Króna-Denominated Assets Subject t...
IMF Executive Board completes Article IV Consultation on Iceland
On 12 June 2017, the Executive Board of the International Monetary Fund (IMF) completed its Article IV Consultation on the status and outlook for the Icelandic economy. An IMF mission visited Iceland to hold discussions with the Icelandic authorities and other stakeholders in March, and their reports on the Icelandic economy were published today on...
Statement of the Monetary Policy Committee 14 June 2017
The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to lower the Bank’s interest rates by 0.25 percentage points. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore be 4.5%.
Webcast on interest rate decision at 10:00
Today at 10:00 the Central Bank of Iceland aired a webcast explaining the Monetary Policy Committee‘s interest rate decision. The Committee’s decision was announced on the Bank’s website via news release at 8:55.
Interest on Central Bank of Iceland certificates of deposit
With reference to Article 10, Paragraph 2 of the Act on the Treatment of Króna-Denominated Assets Subject to Special Restrictions, no. 37/2016, annual interest rates on the certificates of deposit specified in the Act are reviewed by the Central Bank on interest payment dates. The Bank has decided that, from the 2 June 2017 interest payment date, t...
Balance of payments in the first quarter of 2017 and the international investment position
The current account balance was positive by 11.1 b.kr. during the first quarter of 2017, as opposed to a positive balance of 44.6 b.kr. in the preceding quarter. The balance on goods was negative in the amount of 35.1 b.kr., while the balance on services was positive by 43.1 b.kr. The balance on primary income was positive by 8.7 b.kr., whereas sec...
Minutes of the MPC
Here are the minutes of the Monetary Policy Committee of the Central Bank of Iceland from the meeting held on 15 and 16 May 2017. There, the Committee discussed economic and financial market developments, the interest rate decision on 17 May, and the communication of that decision.
Minutes of the second meeting of the Macroeconomic Council
The second meeting of the Macroeconomic Council was held on 6 April 2017. Members of the Council are the Prime Minister, the Minister of Finance and Economic Affairs, Minister for the Environment and Natural Resources, executives from the Confederation of Icelandic Employers, Association of Local Authorities, and Central Bank of Iceland.
Terms, conditions, purch. offshore kr. assets
With reference to press releases issued by the Central Bank on 5 May 2017, the Bank offers to purchase offshore króna assets as these are defined in the Act on the Treatment of Króna-Denominated Assets Subject to Special Restrictions, no. 37/2016, in cash and for euros, at an exchange rate of 137.5 krónur per euro. This offer applies to deposits, b...
Central Bank suspends regular foreign currency purchases
With reference to announcements to that effect, the Central Bank of Iceland has since 2002 bought foreign currency from market makers in the foreign exchange market, albeit with several pauses, both to enable the Treasury to service its foreign debt and to support the foreign exchange reserves. In the recent term, the Bank’s regular purchases have...