Iceland: Further steps towards capital account liberalisation - Purchase of offshore Krónur by the Central Bank of Iceland
Further to our Marketflash M17010, dated 13 March 2017, the Central Bank of Iceland (CBI) has confirmed today that it will offer to purchase offshore Króna assets, as these are defined in the Act no. 37/2016 on the Treatment of Króna-Denominated Assets Subject to Special Restrictions for cash euros, at an exchange rate of 137.5 ISK/EUR.
According to the CBI’s announcement this offer applies to the deposits, the bills and bonds issued by the Treasury or the Housing Financing Fund (HFF), and the Central Bank certificates of deposit (CBI2016) (ISIN IS0000027068). However, offshore Króna assets in the form of deposits will need to be exchanged against Central Bank certificates of deposit prior to the transaction.
The price of offshore Króna assets will be based on the best bid at the close of business on 10 March 2017, as is specified in the table below, plus accrued interest at the settlement date.
Although the CBI has not confirmed the operational conditions and regulatory requirements of this offer, Clearstream Banking can already confirm that it will be supporting its customers to participate to this offer.
Continuous dialogue and efficient cooperation will be maintained with the CBI along the ongoing Capital Control Liberalisation process. A detailed participation procedure will soon be available to customers.
Please also refer to the CBI’s communication available on the CBI website.
This Marketflash is intended to provide customers with general information gathered from different sources that are generally believed to be reliable. Clearstream Banking S.A. does not guarantee the accuracy or completeness of the information and does not undertake to keep it up to date. Use of the information made available in this Marketflash is at the customer’s own risk and Clearstream Banking S.A., its subsidiaries and affiliates expressly disclaim any liability for any errors or omissions reflected herein. The information in this Marketflash does not constitute legal or tax advice.