03 February 2015

Domestic foreign exchange market and foreign exchange reserves 2014

Central Bank of Iceland and the mountain Esja

At the beginning of each calendar year, the Central Bank publishes a foreign exchange market summary of developments in the market and changes in the foreign exchange reserves during the previous year. The foreign exchange market was more stable in 2014 than in the years preceding. The króna appreciated by just under 2% over the year, as opposed to 11% in 2013; turnover rose markedly, and substantial foreign currency inflows prompted the Central Bank to purchase more currency in the interbank market than it had previously done. Central Bank transactions accounted for about 43% of total market turnover, up from 12% in 2013, and total turnover increased by more than 60% year-on-year. The Bank’s foreign exchange reserves increased by 42.5 b.kr. during the year, to an end-2014 total of 530 b.kr. At the end of 2014, the foreign exchange reserves net of the Central Bank and central government’s foreign-denominated debt were positive by 53 b.kr.

See here the whole press release in a pdf-file:

Domestic Foreign Exchange Market and Foreign Exchange Reserves 2014