Gylfi Magnusson, Icelandic Minister of Commerce believes the time may have come to negotiate with foreigners clamouring to cash in their Icelandic krona Glacier Bonds for foreign currency, and instead offer sections of the foreign assets of Icelandic banks and pension funds.
It is not currently possible to exchange Icelandic kronur in very large amounts, because there is the distinct possibility that a total relaxation of the rules would mean an instant transferral of billions of kronur away from Iceland because of Glacier Bonds government bonds and the assets of foreigners in Icelandic banks, including the Central Bank of Iceland.
Gylfi Magnusson says it is important to either keep the money invested in Iceland or to find a way to allow it to leave the country without having a serious effect on the foreign exchange market. No direct dialogue has yet taken place with the bondholders but there have been advances in the fields of turning the bonds into long term loans or swapping them for Icelandic bank assets abroad.
The matter is under the jurisdiction of the Central Bank, so the decision must come from there, mbl.is reports. But Magnusson says there is no obstacle in the way of trying to set up a dialogue.
“Saving the krona with words…” Hell, I thought this is what’s been going on since, reportedly, the CBI is not using IMF money to prop up the krona and foreign currency is scarce.
These words by the bard come to mind:
Double, double toil and trouble;
Fire burn, and caldron bubble.
Fillet of a fenny snake,
In the caldron boil and bake;
Eye of newt, and toe of frog,
Wool of bat, and tongue of dog,
Adder’s fork, and blind-worm’s sting,
Lizard’s leg, and owlet’s wing,—
For a charm of powerful trouble,
Like a hell-broth boil and bubble.
W. Shakespeare
It seems to me Iceland is sit on a time bomb.
Foreign investors own billions of dollars of Icelandic bonds and they are waiting to dump them as soon as the country refloats its currency (considering that right now there is nothing near what one calls “floating”).
The central bank estimates that international investors own up to IKr400bn ($2.9bn, €2.4bn, £2bn) of domestic bonds.
So, either you keep the restrictions and let the money leave in a scale of a decade or two or … …Actually I have no idea what is the other option?
mossback, you are bizzare
DEAR FRIENDS, I AM GOING TO START A COLLECTIONIST BUSINESS. IT IS ABOUT SELLING ICELANDIC KRONURS TO MUSEUMS AND PEOPLE WHO COLLECT OBSOLETE CURRENCY.
WE CAN MAKE A HUGE PROFIT, FOR EXAMPLE, THEY OFFER 1 EURO FOR BANKNOTES OF 1000 ISK AND 50CENTS OF EURO FOR BANKNOTES OF 500 ISK… IT IS SUCH A GREAT DEAL!! CONSIDERING THAT WE ARE ABOUT TO GET MORE THAN 1000 ISK FOR 1 EURO SOON!!!
DO YOU HAVE DEPRESSION? I HAVE THE MOST EFFECTIVE THERAPY FOR YOU:
“THE ICELANDIC METHOD”
YOU JUST NEED TO COME TO ICELAND, SEE WHAT IS HAPPENING AND LAUGH… YOU WILL LAUGH ENDLESSLY DAY AND NIGHT AND YOU WILL FORGET ALL YOUR PAINS.
( SPECIALLY RECOMMENDED TO EU CITIZENS VISITING ICELAND WITH THEIR EUROS)
HEHEHEHE, HAHAHAHA, HEHEHEHE, ;-) :D
@ bill
>mossback, you are bizzare
No argument there.
The actions of the CBI are equally bizarre. How are they maintaining the krona’s Potemkin value? With some mysterious formula or enchantment? The concoction uttered by the bard’s three norns is probably as effective.
Anyway, they’re down to one norn now aren’t they? One who will probably be dragged from there kicking and screaming.
Wolf is in the garden; wolf is waiting for, and he is hungry; wolf smells the meat, perhaps the stench.
ISK – Iceland – is in the room; Iceland is hungry; Iceland looks for Euros.
If Iceland opens the door, wolf bites and eats: this is the dilemma.
Iceland must try to find Euros without opening the door, at the moment.
Summer … soon!
Open the door now? NEVER !!!
@SIR EURO
I am unemployed in Ireland and just reading your posts has me in hystericsand gets rid of all my depression, I may have stop because I could die laughing and never get to see Iceland like my cousin but however maybe if I just read one of your posts a day I will be able to survive and come to Iceland as tourist, I would like to buy a luxury house and brand new SUV for ten euros!!!
I think Norwegian currency would suits better than Euro for Iceland, imo.
GUS,
once again, if you want to sell Kronur I will gladly buy them…. How about 150 Kronur per dollar ?
MICHAEL, THAT WOULD BE A GREAT DEAL!! CONSIDERING THAT THE DOLLAR IS GOING TO GET TO 800 ISK OR MORE IN THE FOLLOWING WEEKS-MONTHS…
HOW MUCH DO YOU HAVE TO OFFER IN DOLLARS? I HAVE MOST OF MY MONEYS OUT OF ICELAND AND IN EUROS.
BUT AS I MIGHT BE THE ONLY WORKING PERSON EARNING A SALARY IN THIS COUNTRY (AND I AM A FOREIGNER) I ALWAYS MANAGE TO SAVE SO MUCH KRONURS AGAIN AND AGAIN, AND ALSO THE BANKS PAYING ME 17% FOR MY MONEY MONTHLY…. TELL ME
THE BEST OF BEING IN A RUINED AND POOR COUNTRY IS THAT YOU GET EVERYTHING FOR LAUGHING PRICES AND ONE CAN LIVE LIKE A KING… AND THE SECOND IS THAT YOU CAN EASILY MULTIPLY YOUR MONEYS WITH THOSE VERY HIGH INTERESTS… THEN ONE PUTS IT IN FOREIGN ACCOUNTS AND SO IT IS… AGAIN AND AGAIN…
GOD, I LOVE THIS COUNTRY…
Hold on…Let me go fix it…
*picks up a syringe & hammer*
Iceland should think about legalizing cannabis & prostitution like Holland…. all upscale – this will probably boot the Tourist industry. Don’t laugh, I’m serious!
As the dollar gains against most major currencies in the face of global market forces, the ISK maintains its farcical rate and remains impervious to external influence. Perhaps we should rethink this and instead of proposing that Iceland adopt another currency, other nations should dump their Euros and Pounds and Yen and Rubles and… and adopt the Icelandic Krona.
@Raski
>Don’t laugh, I’m serious!
Who’s laughing?