21.05.2012

Auction calendar, Q3/2012

On 14 February 2012, the Central Bank of Iceland announced its auction calendar for the first half of the year, which provided for simultaneous auctions in which the Bank purchased foreign currency according to its Investment Programme, on the one hand, and in exchange for Treasury bonds, on the other. On those same days, the Bank intended to hold auctions in which it offered to purchase Icelandic krónur against cash payment in foreign currency.

Auction dates through the end of the third quarter have now been decided and are as follows:

20 June 2012
29 August 2012
19 September 2012

The Central Bank reserves the rights to increase or decrease the stated number of auction dates.

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. 18/2012
21 May 2012

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