CBI issues new foreign exchange regulation
Restrictions of cross-border movement of capital have been put in place by a new Act passed by parliament. It involves a legal obligation to those acquiring foreign currency to submit it to a domestic financial institution, or a foreign currency account in a financial institution. Restrictions for parties intending to exchange Icelandic kronas for foreign currency are a part of the Act. As soon as circumstances allow, the restrictions will be lifted.
The Central Bank of Iceland will issue Rules on Foreign Exchange based on the authority contained in the new Act on its website.
October guidelines from the CBI on temporary modifications in currency outflow have as a result been revoked. The regulation followed the collapse of three commercial banks in the country and was meant to ensue market disturbances.
”The revocation of the guidelines means that there are no longer restrictions on current account related transactions,“ the Central banks states on its home page.
During the first week of December auction of Treasury notes will be held at the bank.
An economic program following a Stand-By Arrangement for Iceland by the International Monitary Fund is in effect. It entails continuing restrictions until sufficient stability has returned.
Further information is accessible on the Central Bank´s website.
