FX

We strive to identify strategic concerns, trends, and relevant financial information and through meticulous analyses transform this into comprehensive research and clear investment opinions for our clients.
09.08.2018 15:22

ISK still cruising in calm waters

​The exchange rate of the Icelandic króna has been quite stable in recent quarters, even though most of the capital controls have been liberalised and the Central Bank (CBI) has held itself aloof from the foreign exchange market
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17.04.2018 15:50

FX Market: Change of pace and driving forces in 2017

​A smaller current account surplus, increased foreign investment by pension funds and other investors, and changes in foreign currency flows relating to the commercial banks are among the main reasons the ISK exchange rate was virtually unchanged in 2017 after rising steeply in 2016 in spite of a significant year-on-year drop in FX purchases by the Central Bank (CBI).
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29.12.2017 15:21

Króna stabilises in H2/2017

Even though most of the capital controls have been lifted and the Central Bank (CBI) has largely refrained from intervening in the foreign exchange market, the ISK exchange rate has been relatively stable since mid-year.
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24.03.2017 16:03

Has exchange rate stability increased or decreased?

The daily volatility of the ISK in the foreign exchange market has grown exponentially this year, and in recent weeks it has been reminiscent of the free-float years, when speculation was a major determinant of short-term exchange rate movements.
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13.03.2017 13:34

FX market reacts strongly to removal of capital controls

As of noon today, the ISK exchange rate has fallen by 2.9% against the euro and the US dollar and 3.4% against the pound sterling. The drop is due largely to the Government’s announcement yesterday that the restrictions in the Foreign Exchange Act imposing controls on households’ and businesses’ foreign exchange market transactions, foreign investments, hedging activities, and borrowing and lending activities are to be lifted in full. Furthermore, resident entities will no longer be required to repatriate foreign currency.
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17.08.2016 15:38

Positive and timely step towards liberalisation

Restrictions on movement of capital by individuals and firms will be eased significantly in two steps in coming months.
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07.01.2016 14:59

2015: an astounding year for tourism

According to figures published yesterday by the Icelandic Tourist Board, 70,900 foreign nationals departed Iceland via Keflavík Airport (KEF) in December, an increase of 17,100, or 31.9%, year-on-year.
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07.01.2016 14:56

CBI stockpiles foreign currency

Increased foreign exchange inflows have led to an exponential increase in the Central Bank’s (CBI) foreign exchange reserves in the recent term.
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07.08.2015 13:11

Central Bank sets FX purchase record in July

The Central Bank (CBI) bought more foreign currency in July than in any single month to date.
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06.07.2015 14:06

CBI makes record FX purchases in June

Strong foreign currency inflows – owing mainly to the buoyant tourism sector and improved terms of trade – have enabled the Central Bank (CBI) to add substantially to its foreign reserves in recent quarters.
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24.10.2014 14:04

How reliable is the analysis of Iceland’s balance of payments problem?

One of the chief risks the Icelandic economy faces at present centres on the balance of payments: how it will develop in the near term and, in particular, whether there is the risk of massive foreign currency outflows, with the inevitable currency depreciation and inflation spike and the subsequent repercussions for financial stability and private sector financial conditions.
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03.09.2014 16:09

ISK appreciates strongly in FX auctions year-to-date

The spread between the onshore EURISK exchange rate and the auction exchange rate in the Central Bank’s (CBI) foreign currency auctions has shrunk by half since the beginning of the year, and the ISK hit its strongest so far in yesterday’s FX auction.
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04.07.2014 14:36

Services trade plays key role in FX generation

All indicators imply that net foreign exchange inflows from services trade will far exceed those from goods trade this year, in a departure from previous years.
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02.07.2014 09:51

Goods and services prices 12% higher in Iceland than in the EU

According to information from Eurostat, the EU statistical bureau, the domestic price of consumer goods and services was 12% above the EU average in 2013.
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26.06.2014 13:44

MPC satisfied with current real exchange rate for the near term

The minutes of the Central Bank (CBI) Monetary Policy Committee’s (MPC) June meeting, published yesterday, contained little in the way of news.
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09.04.2014 14:16

Real exchange rate at post-crisis high

In terms of relative consumer prices, the real exchange rate of the króna was up 11.7% year-on-year in Q1/2014.
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07.02.2014 15:13

CBI a big player in the FX market

The Central Bank (CBI) has been extremely active in the foreign exchange market in the past two months.
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05.02.2014 14:30

Brisk activity at FX auction

Yesterday’s Central Bank (CBI) foreign currency auction was a large one, with more money changing hands than at any auction in the last two years.
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07.01.2014 15:35

2014 starts with a strong ISK

After an upsurge in December, the exchange rate of the króna is considerably higher than it was at the beginning of 2013, and inflationary pressures are lower.
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04.12.2013 13:51

FX Auction: keen interest in 50/50 investment channel

The foreign currency auction held yesterday by the Central Bank (CBI) was a rather large one characterised by strong interest in importing Icelandic krónur for investment through the so-called 50/50 option.
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29.11.2013 14:50

ISK appreciates at month-end

The ISK has appreciated by 1.2% in trade-weighted terms this week, bringing the US dollar down to ISK 119.5 from ISK 121.3 on Monday.
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20.11.2013 13:44

ISK exchange rate stable

The króna has been very stable since the beginning of October, after a weak spell in September.
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01.11.2013 14:59

Króna appreciating at end of month

The Icelandic krona has been appreciating over the past days. This is a traditional appreciation at the end of the month, since it is at this time that export companies generally exchange part of their foreign currency earnings to pay domestic costs such as wages.
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16.10.2013 15:57

Wide spread in FX auction

The spread between buying and selling rates in yesterday’s Central Bank (CBI) foreign currency auction was the widest since the auction programme was launched in summer 2011.
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