Iceland: Currency auctions resumed

Following on from our Marketflash M14027, dated 29 July 2014, the Central Bank of Iceland (CBI) is pursuing its auction programme of purchases of foreign currency.

The next three auctions, designed to encourage long-term investment in the Icelandic economy, are scheduled for Tuesday 10 February 2015, consisting of the following CBI offers:

To purchase Euros in exchange for Icelandic krónur for long-term investment in the Icelandic economy;
To purchase Euros in exchange for payment in Treasury bond series RIKS 33 0321;
To sell Icelandic krónur for cash payment in foreign currency.

The three auctions are an element in the removal of restrictions on movement of capital as set forth in the CBI’s capital account liberalisation Strategy of 25 March 2011, and in the CBI’s Terms of Foreign Exchange Transactions according to the Investment Programme for capital account liberalisation, dated 18 November 2011, with subsequent amendments.

Please note these auctions will be the last time they are offered in their current form. The capital account liberalisation strategy is currently being revised to reflect the experience gained to date.

Further information can be obtained from the terms of auction, from http://www.cb.is/ under publications or http://www.sedlabanki.is/ or from Mr Már Guðmundsson, Governor of the CBI, at tel: +354 569-9600.

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