Kaupthing Bank to switch to Euros? Skip to content

Kaupthing Bank to switch to Euros?

Kaupthing Bank has changed nearly half its net worth from Icelandic Krona to a foreign currency, probably Euros, in the last three months.

Morgunbladid reports that almost 50 percent of Kaupthing’s net worth, which is about ISK 300 billion (EUR 3.2 billion, USD 4.2 billion) is now registered in Euros.

Representatives from Kaupthing have not confirmed that it is the bank’s policy to make a complete switch to Euros, but they told Morgunbladid that Kaupthing has been increasing the proportion of foreign currency within the bank to protect its net worth.

Kaupthing confirmed to Morgunbladid that the bank has applied for an exemption at the Central Bank in Iceland so that it can have a higher proportion of its net worth in a foreign currency than the 30 percent limit that is laid down at the Central Bank.

It is not clear how much of its net worth Kaupthing is allowed to have in a foreign currency or if it is in Euros, but Morgunbladid is certain that it is and that the proportion is close to 50 percent.

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