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Foreign exchange market, exchange rate developments, and international reserves 2020

15.01.2021

The króna depreciated by 10.4% in 2020, and turnover in the interbank foreign currency market increased by 124% year-on-year. The domestic foreign currency market was strongly affected by the COVID-19 pandemic, and the Central Bank conducted large-scale trades in the market to mitigate volatility and improve price formation.

Monetary Policy Committee report to Parliament

14.01.2021

The Central Bank Monetary Policy Committee’s (MPC) report to Parliament (Alþingi) on the Committee’s work in H2/2020 has been posted on the Bank’s website. The report is supplemented by a wide range of supporting material, including separate reports by external committee members.

Statement of the Financial Supervision Committee 13 January 2021

13.01.2021

The Financial Supervision Committee has amended the guidelines on financial institutions’ and insurance companies’ dividend payments and purchases of their own shares through 30 September 2021, in view of the impact of the COVID-19 pandemic. The Committee’s statement highlights the points that it recommends as guiding principles in such transaction...

Statement of the Financial Stability Committee 16 December 2020

16.12.2020

A more accommodative monetary stance has supported asset markets, enabled households and businesses to deal with the repercussions of the pandemic, and maintained financial stability. The reduction in the countercyclical capital buffer and measures to boost market liquidity have made it easier for financial institutions to work with distressed borr...

Webcast started at 10:00 hrs.

16.12.2020

A webcast in connection with the statement of the Financial Stability Committee published today started at 10:00 hrs. There was a presentation given by Ásgeir Jónsson, Governor of the Central Bank and Chair of the Committee; and Gunnar Jakobsson, Deputy Governor and the Deputy Chair of the Committee.

Working Paper No. 84: DYNIMO - Version III. A DSGE model of the Icelandic economy

03.12.2020

The Central Bank of Iceland has published a a Working Paper with a new handbook for the third version of Dynimo, the bank‘s dynamic stochastic general equilibrium model, including derivations of model equations from first principles as well as validation and motivation for the mathematical tools needed. Estimation and evaluation of the model‘s prop...

Central Bank to continue programme of regular foreign currency sales

30.11.2020

From Tuesday 1 December through the end of the month, the Central Bank of Iceland will sell 3 million euros per day to market makers in the interbank market for foreign exchange, for a total of 66 million euros during the month. The transactions will take place soon after the market opens in the morning, and no later than 10:00 hrs.

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Incentives

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