Microsoft Iceland has reached an agreement with the headquarters of Microsoft that all trade between Icelandic companies and consumers with Microsoft be fixed with the exchange rate of EUR 1 being estimated as worth ISK 120.
According to the Central Bank of Iceland, the real value of EUR 1 is around ISK 174 which means that in its trade, Microsoft is assuming that the Icelandic króna is 31 percent stronger than it really is, as explained in a press release from Microsoft Iceland.
“Microsoft Iceland has faith in the Icelandic economy long-term, although we will face difficulties in the coming weeks and months. Everyone has to contribute to keep the economy going and this is our contribution,” said managing director of Microsoft Iceland, Halldór Jörgensson.
“Executives in the headquarters of Microsoft had a lot of understanding for the situation we have here and it was very pleasing to see how far they are prepared to go to help us by taking a position with the króna,” Jörgensson added.
Microsoft’s decision is likely to prove beneficial for the Icelandic economy. Almost 3,000 Icelandic companies trade with Microsoft, including many of the largest companies in the country.
The current economic crisis in Iceland is the reason for Microsoft fixing the exchange rate of the ISK. Never before has Microsoft contributed towards solving a national crisis in such a way, although the company did provide Argentina with economic assistance on an earlier occasion under different circumstances.
Recently, Microsoft Iceland was given permission from the headquarters of Microsoft to speed up the introduction of a so-called BizSpark project in Iceland, aimed towards providing seed companies with free access to software and development tools.
The exchange rate of the króna will be fixed by Microsoft for three months to begin with after which time the company will review its policy.