15 October 2008

Temporary foreign exchange arrangements

The Central Bank of Iceland has come to an agreement with market makers in the foreign exchange market, as well as with several other financial undertakings, concerning temporary foreign exchange arrangements designed to facilitate international trade.

Foreign exchange transactions will take place in accordance with the Central Bank's guidelines concerning modifications in currency outflow. The foreign exchange arrangements will involve daily auctions that will be indicative of the exchange rate of the Icelandic króna with respect to foreign currencies. The exchange rate in the auction will be determined by supply and demand for currency.