21.10.2016

Director of Central Bank Financial Stability Department

Harpa Jónsdóttir has been appointed Director of the Central Bank of Iceland’s Financial Stability Department. The Financial Stability Department’s role is to analyse financial system risk and participate in the formulation of prudential rules for the financial system. The department also oversees the activities of the Systemic Risk Committee and participates in broad-based international cooperation on the regulatory framework and supervision of the financial system.

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21.10.2016

Amendments to the Foreign Exchange Act

Law amending the Foreign Exchange Act, no. 87/1992 took effect on 21 October 2016. Their purpose is to lift capital controls on households and businesses. The new legislation became effective on 21 October. The principal changes made with the amending Act entail increased authorisations for foreign exchange transactions and cross-border movement of capital, plus the removal of specific restrictions that have applied to foreign exchange transactions and cross-border movement of capital. Some of the amendments provided for enter into force immediately and others on 1 January 2017. Before 1 July 2017, the Central Bank of Iceland is also required to review the maximum authorisations (ceilings) applying to specific foreign exchange transactions and cross-border movement of capital in its Rules on Foreign Exchange.

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19.10.2016

New authorisation for pension funds’ foreign investment

The Central Bank of Iceland has decided to grant pension funds and other domestic custodians of third-pillar pension savings an exemption from the Foreign Exchange Act, no. 87/1992, thereby permitting them to invest in financial instruments issued in foreign currency. The total authorisation, which amounts to 15 b.kr., remains in effect until the year-end. From mid-2015 through end-September 2016, the above-specified parties have been authorised to invest abroad for a total of 80 b.kr. In 2016, the authorisations granted amount to 85 b.kr., including those announced with this press release.

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19.10.2016

Minutes of the MPC

Here are the minutes of the Monetary Policy Committee of the Central Bank of Iceland from the meeting held on 3 and 4 October 2016. There, the Committee discussed economic and financial market developments, the interest rate decision on 5 October, and the communication of that decision.

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14.10.2016

Governor’s meetings in Brussels 27-28 September 2016

On 27 and 28 September, Governor Már Guðmundsson gave two speeches in Brussels, as well as meeting with the Board of the EFTA Surveillance Authority (ESA) and high-ranking officials of the European Commission in the fields of economics and financial markets. The discussion focused in particular on capital controls and macroprudential tools.

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