20.06.2012

Results of foreign currency auctions

On the 22 May 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 króna purchase auction took place 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.

Results of EUR purchase auction
In all, 49 bids totalling 43.8 million euros were submitted, and bids in the amount of 23.7 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 245 kr. per euro.

 

Highlights          Total  Treasury bonds  Investment Programme 
 Number of bids  49  15  34
 Total amount in EUR  43.8 m  26.7 m  17.1 m
 Accepted bids in EUR  23.7 m  6.6 m  17.1 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 1.5 b.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 the equivalent of 5.8 b.kr.

Results of ISK purchase auction
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 246 kr. per euro. In all, bids were submitted in the amount of 29.0 b.kr., and bids totalling 7.5 b.kr. were accepted. 

 Highlights Total 
 Number of bids  42
 Total amount in b.kr.  29.0
 Accepted bids in b.kr.  7.5

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

No. 24/2012
20 June 2012

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