Banks will not switch to Euros in 2007 Skip to content

Banks will not switch to Euros in 2007

By Iceland Review

Icelandic investment banks will not change the currency of their net worth this year, except for Straumur-Burdarás. According to law, they would have had to apply before November 1 2006 to be able to make the change in 2007.

Yesterday’s reports indicated that Kaupthing Bank is planning a complete switch to Euros this year, but according to Fréttabladid’s sources, the bank did not apply before the deadline. Glitnir and Landsbankinn did not apply for a currency change either.

The banks have, however, reportedly changed a large proportion of their net worth to a not specified foreign currency.

Fréttabladid reports that the banks fear the Icelandic Krona will weaken again as it did in 2006, and by having their net worth in a foreign currency they are protected from potential fluctuations and the lowering of interest rates by the Central Bank.

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