Information on planned purchase of offshore krónur by the Central Bank
When the Central Bank's agreement with owners of offshore krónur was announced on 12 March 2017, it was also announced that offshore króna holders that had not made such an agreement with the Bank would be invited to enter into the same type of agreement. Preparations for transactions with other owners of offshore krónur are underway, and further i...
S&P Research Update: Republic of Iceland Ratings Raised To 'A/A-1' On Lifting Of Capital Controls; Outlook Stable
S&P has raised Republic of Iceland Ratings to 'A/A-1' on lifting of capital controls. Outlook is stable. S&P say they believe that the recent lifting of most of the remaining capital controls and the conclusion of an agreement with the owners of offshore krona assets strengthen Iceland's external profile.
Moody‘s Investors Service, Issuer Comment on the Government of Iceland
Today Moody‘s Investors Service issued a Comment on the Government of Iceland: Elimination of Capital Controls is Credit Positive for the Sovereign and the Financial Sector. It can be accessed here.
Statement of the Monetary Policy Committee 15 March 2017
The Monetary Policy Committee (MPC) of the Central Bank of Iceland has decided to keep the Bank’s interest rates unchanged. The Bank’s key interest rate – the rate on seven-day term deposits – will therefore remain 5%.
New Rules on Foreign Exchange
New Rules on Foreign Exchange were published on the Central Bank of Iceland website today. The Rules will be published in the Law and Ministerial Gazette tomorrow and will take effect the following day, 14 March 2017. With the new Rules, the restrictions on foreign exchange transactions and cross-border movement of domestic and foreign currency hav...
Central Bank of Iceland concludes agreement with owners of offshore króna assets
The Central Bank of Iceland has concluded an agreement with owners of offshore króna assets subject to special restrictions pursuant to Act no. 37/2016. Under the agreement, the Bank will purchase offshore króna assets from them in the amount of equivalent of close to 90 b.kr. at an exchange rate of 137.5 kr. per euro. Offshore króna holders that h...
Amended Rules on Special Reserve Requirements for New Foreign Currency Inflows
Rules amending Central Bank of Iceland Rules no. 490/2016 on special reserve requirements for new foreign currency inflows were published on Central Bank of Iceland website today. The Rules will be published in the Law and Ministerial Gazette tomorrow and will take effect the following day, 14 March 2017. The amendments are made concurrent with the...
Balance of payments in the fourth quarter of 2016 and the international investment position
The current account balance was positive by 44.7 b.kr. during the quarter, as opposed to a positive balance of 100.7 b.kr. in the preceding quarter. The balance on goods was negative in the amount of 13.3 b.kr., while the balance on services was positive by 43.4 b.kr. The balance on primary income was positive by 19.3 b.kr., whereas secondary incom...
Katrín Ólafsdóttir reappointed to Central Bank of Iceland Monetary Policy Committee
The Prime Minister has reappointed Dr. Katrín Ólafsdóttir, Assistant Professor at Reykjavík University, as a member of the Central Bank of Iceland Monetary Policy Committee (MPC) pursuant to the Act on the Central Bank of Iceland, no. 36/2001. Katrín has been a member of the MPC since 3 March 2012. She worked as an economist at Landsbanki Íslands f...
Exemptions for derivatives trading for hedging purposes
The Central Bank of Iceland considers premises to exist to grant specific exemptions from the Foreign Exchange Act, no. 87/1992, upon receipt of an application, for derivatives trading for long-term hedging purposes. This change in execution represents another step towards full liberalisation of the capital controls. More specifically, the exemptio...