

Foreign exchange market, exchange rate developments, and international reserves 2020
The króna depreciated by 10.4% in 2020, and turnover in the interbank foreign currency market increased by 124% year-on-year. The domestic foreign currency market was strongly affected by the COVID-19 pandemic, and the Central Bank conducted large-scale trades in the market to mitigate volatility and improve price formation.


Monetary Policy Committee report to Parliament
The Central Bank Monetary Policy Committee’s (MPC) report to Parliament (Alþingi) on the Committee’s work in H2/2020 has been posted on the Bank’s website. The report is supplemented by a wide range of supporting material, including separate reports by external committee members.


Statement of the Financial Supervision Committee 13 January 2021
The Financial Supervision Committee has amended the guidelines on financial institutions’ and insurance companies’ dividend payments and purchases of their own shares through 30 September 2021, in view of the impact of the COVID-19 pandemic. The Committee’s statement highlights the points that it recommends as guiding principles in such transactions.


Announcement concerning Central Bank purchases of Treasury bonds
At the beginning of May 2020, the Central Bank of Iceland began buying Treasury bonds in the secondary market, in accordance with the 23 March 2020 statement by the Monetary Policy Committee.


Central Bank to continue regular programme of foreign currency sales
From Monday 4 January 2021 through the end of the month, the Central Bank of Iceland will sell 3 million euros per business day to market makers in the foreign exchange market, for a total of 60 million euros during the month. The transactions will take place soon after the market opens, and no later than 10:00 hrs.
