Central Bank of Iceland Locks the ISK’s Currency Skip to content

Central Bank of Iceland Locks the ISK’s Currency

The collapse of the Icelandic króna for the past weeks is so significant that it imbalances the national economy. The Central Bank of Iceland has therefore been given permission from the Prime Ministry to lock the currency of the ISK.

The ISK took another severe plunge yesterday, depreciating by more than ten percent, so that USD 1 is currently ISK 128, EUR 1 is currently ISK 174, GBP 1 is currently 223, DKK 1 is currently 23 and JPY 1 is currently ISK 1.27.

However, later today after the Central Bank’s actions take effect, the currency rate index will be 175 points in trade between banks, which means that EUR 1 will be worth ISK 131, ruv.is reports.

The goal with these actions is to support the appreciation of the ISK and achieve stability in currency and pricing matters. At the same time, the Central Bank is trying to speed up the subsidence of the inflation. Strengthening the country’s currency reserves with the loan from Russia, will also encourage that development.

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