What is authorised?

With the Rules on Foreign Exchange, no. 200/2017, which took effect on 14 March 2017, most restrictions on foreign exchange transactions and cross-border movement of domestic and foreign currency were lifted. Since then, households and businesses have generally been unaffected by the restrictions provided for in the Foreign Exchange Act, including those on foreign exchange transactions, investment abroad, hedging, and lending. The requirement that foreign currency be repatriated was lifted as well. These are the items that have had the greatest impact on households and businesses since the capital controls were introduced in autumn 2008. With the amendments, foreign investment by pension funds, funds for collective investment (UCITS), and other investors in excess of the maximum amounts provided for in the Foreign Exchange Act, which until then had been subject to explicit exemptions by the Central Bank, was authorised. The status of króna-denominated assets subject to special restrictions pursuant to Act no. 37/2016—so-called offshore króna assets—is unchanged, however.

Special reserve requirements for specified investments in connection with new inflows of foreign currency remain in place. Further information on the special reserve requirement can be found here.

Information on the restrictions under the Foreign Exchange Act that are still in effect can be found here.

Further information on authorisations for foreign exchange transactions and cross-border movement of capital according to the Foreign Exchange Act and Rules on Foreign Exchange can be obtained by sending a query via e-mail to gjaldeyrismal@sedlabanki.is or by calling +354 569-9600.