Central Bank of Iceland Abandons Fixing Currency Skip to content

Central Bank of Iceland Abandons Fixing Currency

The Central Bank’s efforts to fix the currency of the Icelandic króna on Tuesday did not have the desired results. It announced yesterday that there was not enough support for the currency rate of the ISK and that it would therefore no longer be fixed.

On Tuesday the Central Bank sold EUR 6 million (USD 8 million) with the currency fixed at ISK 131 for one euro. However, that amount was not high enough to strengthen the currency of the ISK to any significant extent, Morgunbladid reports.

Similar as on Tuesday, the exchange rate of the ISK fluctuated considerably yesterday depending on the financial institute that was trading with it. On the websites of the commercial banks one euro cost around ISK 130, but much more at the credit card companies.

Mastercard registered the exchange rate of EUR 1 as ISK 188.6 and Visa estimated that EUR 1 was worth as much as ISK 228.6.

Click here to read more about the fluctuations of the króna and here to read about the Central Bank’s efforts to fix the currency.

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