28 January 2009

Misstatements about foreign exchange reserves in Fréttabladid

Today's issue of Fréttabladid contains incorrect assertions about the Central Bank of Iceland's foreign exchange reserves, and the Bank considers itself obligated to refute them.

The news article and the accompanying discussion claim that the Bank's foreign exchange reserves are exaggerated and that collateral submitted for a specified loan is considered by the Bank to be a part of its foreign reserves. This is incorrect. The items referred to are not a part of the foreign exchange reserves. The calculation of the reserves and the presentation of information about them are both carried out in full consultation and co-operation with the International Monetary Fund and follow the Fund's guidelines.

It should be noted that at year-end 2008, the Central Bank of Iceland's foreign exchange reserves amounted to 429.4 billion Icelandic krónur, according to information that was published earlier in the month and is available on the Bank's website. It is emphasised herewith that the collateral referred to by Fréttabladid is not included in that figure.


No. 3/2009
January 28, 2009