Iceland’s Central Bank Relaxes Capital Controls Skip to content

Iceland’s Central Bank Relaxes Capital Controls

By Iceland Review

The first step towards abolishing currency restrictions has been taken by Iceland’s Central Bank by permitting the inflow of foreign currency for new investments and the outflow of foreign currency that can lead to future investments.

The Central Bank of Iceland. Photo by Páll Stefánsson.

Foreign exchange inflows for new investments will be converted into Icelandic krónur by financial undertakings operating under the supervision of the Financial Supervisory Authority, as explained on the Central Bank’s website.

In addition to these amendments, the Rules on Foreign Exchange have been revised with the aim of enhancing consistency and closing loopholes that have been used to circumvent the capital controls, the website explains.

Minister of Business Affairs Gylfi Magnússon announced last week that with the International Monetary Fund’s review of Iceland’s economic stabilization program, currency restrictions could now be abolished gradually.

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