28.06.2011

Results of foreign currency auction

On 16 June, the Central Bank of Iceland offered to purchase euros against payment in Treasury bonds. The resulting auction, which took place between 10:00 and 11:00 hrs. today, is an element in the removal of restrictions on movement of capital as set forth in the Central Bank’s capital account liberalisation strategy, published on 25 March 2011.

Offers were submitted for a total of 71,800,000 euros, and offers for 61,740,000 euros were accepted. The auction was structured with a single-price format, so that all accepted offers were made available to primary dealers at the same price, which was set at 210.00 kr. per euro. Purchasers receive indexed Treasury bonds as payment for the foreign currency. Thus a total nominal amount of 12,965,400,000 kr. was sold in the indexed Treasury series RIKS 30 0701. Offers under the auction price were accepted in full, and those equal to the auction price were accepted pro rata, at a percentage of 80.0%.

Further information can be obtained from Arnór Sighvatsson, Deputy Governor of the Central Bank, at tel: +354 569 9600.

 

No. 18/2011
28 June 2011

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