Central Bank

Monetary Policy Committee report to Parliament


The Central Bank Monetary Policy Committee’s (MPC) report to Parliament (Alþingi) on the Committee’s work in H2/2019 has been posted to the Bank’s website. The report is supplemented by a wide range of supporting material spanning 178 pages. Furthermore, for the first time, the MPC report is accompanied by reports from the Committee’s external memb...

Foreign exchange market, exchange rate developments, and international reserves 2019


The króna depreciated by 3.1% in 2019. Turnover in the interbank foreign exchange market totalled 188.3 Bank’s turnover in the interbank market totalled 7.6% in 2019. The Bank's international reserves increased by roughly 86 in 2019, to 822 by the year-end. The Central Bank’s foreign exchange balance – i.e., the difference between...

New organisational chart for the Central Bank of Iceland


A new organisational chart for the Central Bank of Iceland took effect yesterday, 8 January 2020, on the basis of the new Act on the Central Bank of Iceland, no. 92/2019. As is provided for in the Act, the Central Bank and the Financial Supervisory Authority merged at the beginning of 2020. Under the new organisational structure, some departments h...

First meeting of the Central Bank Financial Supervision Committee


The first meeting of the Financial Supervision Committee was held today at the Central Bank of Iceland. The Financial Supervision Committee takes decisions entrusted to the Financial Supervisory Authority by law and Governmental directives. The Committee’s rules of procedure were approved at today’s meeting.

Financial Supervisory Authority and Central Bank of Iceland merge


The Financial Supervisory Authority and the Central Bank of Iceland merged at the turn of the year, under the name Central Bank of Iceland. The merger gives rise to a strong and independent institution whose objective is to enhance trust, transparency, and efficiency in the administration of economic affairs and financial supervision in Iceland.

Central Bank website updated today


The Central Bank of Iceland’s website was updated today, and users may experience some delays or disturbances in site performance as a result. The update is taking place because of the entry into force of the new Act on the Central Bank of Iceland, which formalises the merger of the Bank and the Financial Supervisory Authority. With the merger, the...

Gunnar Jakobsson appointed Deputy Governor for Financial Stability


Prime Minister Katrín Jakobsdóttir has appointed Gunnar Jakobsson to the position of Deputy Governor for Financial Stability. Gunnar Jakobsson has a degree in Law and an MBA from Yale University. In recent years he has held executive positions with Goldman Sachs, first in New York, and more recently as Managing Director of Liquidity and Personal Da...

Minutes of the MPC


Here are the minutes of the Monetary Policy Committee of the Central Bank of Iceland from the meeting held on 9 and 10 December 2019. There, the Committee discussed economic and financial market developments, the interest rate decision on 11 December, and the communication of that decision.

Economic Indicators 20 December 2019


The Central Bank of Iceland’s Economic Indicators report for December 2019 has been released and can be found here on the Bank’s website. The publication contains information on developments in prices, output, external trade, the labour market, public sector finances, asset markets, and the financial market. The information is published in chart fo...

IMF issues annual Article IV report on Iceland


The Executive Board of the International Monetary Fund concluded its 2019 Article IV consultation with Iceland today, 19 December. The IMF holds similar consultations with member countries every one to two years on the basis of Article IV of the IMF‘s Articles of Agreement. A Selected Issues Paper on the Scope for Improving Iceland‘s Fiscal Framewo...

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Iceland focuses on a favorable business environment, including low corporate tax, availability of land and green energy at competitive prices and efficiency within European legislative framework. New direct investment projects can apply for an investment agreement, ensuring generous regional incentives, including a corporate tax rate ceiling of only 15%.

Why Iceland

Along with having one of the lowest corporate tax rate in Europe, Iceland has a highly educated workforce which is ranked among the highest in the world, offers competitively priced renewable energy with an advanced infrastructure making Iceland an ideal location for investors