Icelandic Króna Floated in the Banks Skip to content

Icelandic Króna Floated in the Banks

The Icelandic króna will be floated again today when trade with the currency is resumed on the inter-bank market, according to new regulations on the foreign currency market set by the Central Bank of Iceland.

Copyright: Icelandic Photo Agency.

“Emphasis will be put on creating as active a market and as natural a price determination as possible. For that a good framework and transparent trade are necessary,” reads a statement issued by the Central Bank yesterday, Fréttabladid reports.

To begin with, the new commercial banks, Landsbanki, Glitnir and Kaupthing, will act as market makers for currency. The Central Bank expects other banks to serve that purpose as well later on.

On Friday last week the Icelandic króna was re-floated for the first time after the collapse of Iceland’s banking system (which resulted in a severe depreciation of the currency), but today’s initiative is more extensive with the banks participating.

Click here to read more about Friday’s initiative.

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