18 March 2014

Results of foreign currency auctions

On 5 February 2014, the Central Bank of Iceland offered to purchase euros in exchange for Icelandic krónur for long-term investment in the Icelandic economy, or in exchange for payment in Treasury bond series RIKS 33 0321. The Bank also advertised for bids on the sale of Icelandic krónur for cash payment in foreign currency. The two euro purchase auctions took place between 9:45 hrs. and 10:45 hrs. today and the króna purchase auction took place between 13:00 hrs. and 14:00 hrs. The auctions were an element in the removal of restrictions on movement of capital as set forth in the Central Bank’s capital account liberalisation strategy, published on 25 March 2011. Further information can be found in the Central Bank of Iceland Terms of foreign exchange transactions according to the Investment Programme for capital account liberalisation, with subsequent amendments, dated 18 November 2011.

Results of EUR purchase auction

In all, 98 bids were submitted, 28 for the Treasury bonds auction and 70 for the Investment Programme auction, totalling 33.1 million euros. With reference to Article 7 of the Terms of Auction, it was decided to reject all bids.

Results of ISK purchase auction

In all 24 bids were submitted in the amount of 16.2 b.kr. With reference to Article 5 of the Terms of Auction, it was decided to reject all bids.
The next foreign currency auctions will be conducted on 14 May, 24 June and 2 September 2014.

Further information can be obtained from Már Guðmundsson, Governor of the Central Bank of Iceland, at tel: +354 569-9600.

No 7/2014
18 March 2014