ISK Depreciates Following Current Account Deficit Skip to content

ISK Depreciates Following Current Account Deficit

The ISK depreciated by two percent on Friday and the selected shares index of the OMX-NASDAQ Nordic Stock Exchange in Iceland dropped by 1.5 percent, mainly because of the news of the current account deficit during the second quarter.

The current account deficit in Iceland in the second quarter of 2008 was ISK 128 billion (USD 1.45 billion, EUR 1.02 billion), Morgunbladid reports.

Other domestic and foreign influential factors may also have contributed to the depreciation of the ISK on Friday; the value of foreign stock indexes decreased considerably on Thursday, especially in the Nordic countries.

However, Dutch banks have issued bonds denominated in the Icelandic currency, which may have prevented the ISK from depreciating more.

Click here to read more about the current account deficit.

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