Breach of Currency Restrictions Probed in Iceland Skip to content

Breach of Currency Restrictions Probed in Iceland

By Iceland Review

The Icelandic Financial Supervisory Authority is currently investigating around 20 cases on possible violations of the currency restriction laws, introduced after the banking collapse last fall in an effort to strengthen the exchange rate of the Icelandic króna.

Photo by Páll Stefánsson.

The currency restrictions have not delivered the desired results because it seems that companies involved in foreign trade have found ways to get around them, Fréttabladid reports.

Possible violations include companies buying Icelandic krónas in offshore markets for revenue in foreign currency and exemptions from their obligations to hand in foreign currency.

The currency restrictions have therefore been tightened, the last time in September. The low exchange rate of the króna is preventing the lowering of the policy rate.

Click here to read more about the currency restrictions.

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