14.02.2012

Central Bank of Iceland auction calendar

The Central Bank of Iceland intends to hold auctions on the following days, offering, on the one hand, to purchase foreign currency under the Central Bank Investment Programme and, on the other, to purchase foreign currency in exchange for Treasury bonds:

28 March 2012
9 May 2012
20 June 2012

On these same days, the Bank also intends to hold auctions in which it offers to purchase Icelandic krónur against cash payment in foreign currency.

The aim of the auctions is to sell krónur to parties that are willing to own them for a minimum of five (5) years through purchases of Treasury bonds or investments under the Investment Programme announced on 18 November 2011. The auctions also enable investors to sell their króna holdings in a systematic manner if they so choose. The Bank’s aim with these transactions is to facilitate the removal of the capital controls without causing major exchange rate or monetary instability or jeopardising financial stability. They also aim to provide the Treasury with economical, long-term funding, thus reducing its re-financing need while the capital controls are being lifted.

The auctions and the Terms of Auction will be advertised in greater detail at a later date. The application deadline for participation in the Investment Programme is 14 days prior to the auction concerned.

No. 5/2012
14 February 2012

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