New Rules on the Foreign Exchange Market
The Central Bank of Iceland has issued new Rules on the Foreign Exchange Market, no. 600/2020, which will take effect on 30 August 2020. The new Rules will replace Rules no. 1098/2008.
Among the main changes in the new Rules is the requirement that market makers adopt the Global Foreign Exchange Committee’s (GFXC) FX Global Code on best practice in foreign exchange transactions. The Central Bank adopted the FX Global Code in November 2018 and announced it on the Bank’s website. The Code can be found here: The FX Global Code (Press release no. 16/2018, 9 November 2018).
In addition, changes have been made to the time of the fixing and publication of the official exchange rate of the Icelandic króna. Effective 31 August 2020, the Central Bank of Iceland will fix the official reference exchange rate of the króna at 14:15 hrs. Central European Time (CET)*, in line with the practice in neighbouring countries. The reference exchange rate will then be published on the Bank’s website each business day at 16:00 hrs. Icelandic time and not at 11:00 hrs., as before. The Central Bank wishes to emphasise that currency exchange rates are published solely for information purposes and in satisfaction of legal requirements.
The new Rules on the Foreign Exchange Market, no. 600/2020, can be found here: Rules on the Foreign Exchange Market, no. 600/2020. 3 June 2020.
* Because the exchange rate is always fixed at 14:15 hrs. CET, the Icelandic time of the exchange rate fixing will change when CET changes between standard time and summer time.
Press release no. 20/2020
18 June 2020