On the following days, the Central Bank of Iceland intends to hold auctions in which it offers to purchase foreign currency under the Central Bank Investment Programme, on the one hand, and to purchase foreign currency in exchange for Treasury bonds, on the other. On these same days, the Bank also intends to hold auctions in which it offers to purchase Icelandic krónur against cash payment in foreign currency.
3 September 2013
15 October 2013
19 November 2013
17 December 2013
The Central Bank reserves the rights to increase or decrease the stated number of auction dates.
The aim of the auctions is to sell krónur to parties that are willing to own them for a minimum of five (5) years through purchases of Treasury bonds or investments under the Investment Programme announced on 18 November 2011. The auctions also enable investors to sell their króna holdings in a systematic manner if they so choose. The Bank’s aim with these transactions is to facilitate the removal of the capital controls without causing major exchange rate or monetary instability or jeopardising financial stability. They also aim to provide the Treasury with economical, long-term funding, thus reducing its re-financing need while the capital controls are being lifted.
The auctions and the Terms of Auction will be advertised in greater detail at a later date. The deadline for submittal of applications for participation in the Investment Programme is 14 business days prior to each auction unless otherwise advertised.
2 July 2013