07.11.2012

Results of foreign currency auctions

On 10 October 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, 57 bids totalling 27.0 million euros were submitted, and bids in the amount of 19.7 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 235 kr. per euro.

Highlights

Total

Treasury bonds

Investment Programme

Number of bids

57

14

43

Total amount in EUR

27.0 m

3.2 m

23.8 m

Accepted bids in EUR

19.7 m

2.9 m

16.8 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 625 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 two auctions totalled the equivalent of 4.6 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 236 kr. per euro. Bids over the auction price were accepted in full, and bids equivalent to the auction price were accepted pro rata, at a rate of 33%. In all, 18 bids were submitted in the amount of 10.3 b.kr., and bids totalling 4.7 b.kr. were accepted.

Highlights

Total

Number of bids

18

Total amount in b.kr.

10.3

Accepted bids in b.kr.

4.7

The next foreign currency auction will be conducted 19 December 2012.

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

No. 40/2012
7 November 2012

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