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.