The Icelandic Securities Depository is about to complete its review of euro-registration processes, which began last month after the Central Bank of Iceland criticized the plans of investment bank Straumur-Burdarás to register its stocks in euros.
Straumur-Burdarás was going to be the first Icelandic company to register its stocks in a foreign currency at the OMX Nordic Stock Exchange in Iceland on September 20, after the stock exchange announced in late August that companies would be permitted to do so.
But its plans were postponed because the Central Bank criticized, among other things, the arrangement of stocktaking, for which Landsbanki Bank was supposed to be responsible, but is usually undertaken by the Central Bank itself, Morgunbladid reports.
Many companies registered at the OMX Nordic Stock Exchange in Iceland already settle their accounts in a foreign currency, euros, pounds or dollars, but no Icelandic company has had its stocks registered in a foreign currency yet.
Once the Icelandic Securities Depository finishes its review of registration processes, companies will be able to register their stocks in euros at OMX, but not in other foreign currencies, as an arrangement for stocktaking for each currency has to be agreed upon first.
Marel Food Systems announced last weekend that its employees, nearly 400, could choose whether they would like to receive a part of their salaries in euros as of January 1, 2008, Fréttabladid reports.
Ólafur Ísleifsson, a lecturer in Reykjavík University’s economics department, told Fréttabladid that the euro would enter the Icelandic economy slowly but surely and without a political decision on whether to adopt it or not—the euro would adopt itself.
Ísleifsson predicted paying salaries in euros could lead to a double economy and recommended the government make a deliberate decision to adopt the euro, otherwise the exchange rate of the Icelandic króna would be at risk and the public would suffer.