28.03.2012

Results of auctions for purchase of euros and Icelandic krónur

On 14 March 2012, the Central Bank of Iceland offered to purchase euros in exchange for Icelandic krónur for long-term investment in the Icelandic economy, or in exchange for payment in Treasury bond series RIKS 33 0321. The Bank also advertised for bids on the sale of Icelandic krónur for cash payment in foreign currency. The two euro purchase auctions took place between 9:45 hrs. and 10:45 hrs. today, and the ISK purchase auction was held between 13:00 hrs. and 14:00 hrs. The auctions were 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. Further information can be found in the Central Bank of Iceland Terms of foreign exchange transactions according to the Investment Programme for capital account liberalisation, with subsequent amendments, dated 18 November 2011.

The Central Bank offered to purchase a total of up to 100 million euros in the two auctions combined, for investment in the Icelandic economy and against payment in Icelandic Treasury securities. In the ISK purchase auction, the Central Bank offered to purchase up to 25 b.kr. The Central Bank reserved the right to raise or lower the auction amounts.

Results of EUR purchase auction

In all, 79 bids totalling 92,9 million euros were submitted, and bids in the amount of 22.5 million 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 239 kr. per euro.  

Key figures

Total

RIKS 33 0321

Investment Programme

Number of bids

79

56

23

Total amount in EUR

92.9 m

70.9 m

22.0 m

Accepted bids in EUR

22.5 m

1.8 m

20.7 m

Investors selling foreign currency according to the Treasury bond option will receive indexed RIKS 33 0321 bonds as payment. Bonds sold in the series totalled 416.7 m.kr. nominal value.

As payment for foreign currency sold, investors participating in the Investment Programme will receive Icelandic krónur for long-term investment in the Icelandic economy. Euros purchased in the auction totalled 4.9 bn.kr.

Results of ISK purchase auction

The auction was structured so that all accepted offers were based on the exchange rates submitted. Bids submitted in the auction totalled ISK 26.3 bn. Offers amounting to 4.9 bn.kr. were accepted, and the minimum price of accepted offers was 235 kr. per euro.

Key figures

Total

Minimum price

Number of bids

40

 

Total amount in b.kr.

26.3 m

 

Accepted bids in b.kr.

4.9 m

235 kr

Further information can be obtained from Már Guðmundsson, Governor of the Central Bank of Iceland, at tel: +354 569-9600.

 

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