The Central Bank of Iceland, on behalf of the Treasury, has reached an agreement with 26 pension funds, according to which the funds will purchase Housing Financing Fund (HFF) bonds owned by the Treasury. The Treasury and the Central Bank acquired the bonds following the banks’ collapse and with agreements with Banque centrale du Luxembourg and the liquidator of Landsbanki Luxembourg on 18 May 2010. The total nominal value of the bonds is 90.2 b.kr., and the sale is made with the aim of expanding the foreign exchange reserves. Furthermore, it reduces the Treasury’s net foreign-denominated debt, which had increased because of the financing of the aforementioned purchase. According to the agreement, the pension funds will sell foreign assets and pay for the bonds in euros, remitting a total of EUR 549 million. This transaction increases the Central Bank of Iceland’s foreign exchange reserves by 82 b.kr. (512 million euros), or by 17%. Read the full story

A growing number of Swedes have expressed opposition to finalising plans to replace the Krona with the euro. Read the full story

The Faroe Islands currently use the Danish krone (DKK) as their local currency; however, the Sjalvstyrisflokkurin (Independence Party of the Faroe Islands) has applied for establishing the euro as the national currency. The application was sent to the Central Bank of the European Union on Wednesday. Read the full story

According to the National Treasury of Iceland, locally known as Seðlabanki Ísland, the Euro (EUR) has reached over 180 Icelandic kronur. The exchange rate index is now at 233.23 according to the National Treasury. The krona decreased about 1 perfect yesterday and even less this morning. The Pound is now at 208kr, Danish krone is at 24kr, and the US dollar is at 130kr.

The Reuters news agency is carrying a story on the countries thought likely to seek entry to the European Union. The article says that Iceland will likely find it easier to enter the bloc than many other countries. Read the full story

The Norwegian newspaper Klassekampen published an interview on Friday with Iceland’s soon-to-be Left Green Party Minister of Finance. Steingrimur J. Sigfusson appeared on the front page of the paper under the headline, “Liking the Norwegian krona”. Read the full story

The weakened Swedish national currency, the krona, is luring Finnish shoppers from across the border looking to cash in on favourable exchange rates. Since the autumn of 2008, the krona has depreciated by 15 percent compared to the euro, and this means some worthwhile savings are available to Finns in Sweden. Read the full story

The nations that make up Scandinavia are some of the most ardent in Europe about abstaining from joining the common European currency. But Finland’s Minister of Sport and Culture, Stefan Wallin, recently wrote an article in the regional newspaper Turun Sanomat stating that he feels a Nordic region with a single currency would be better positioned to weather global economic turmoil. Read the full story

The finals of the under-21 version of one of the world’s most popular and entertaining football tournaments, the UEFA European Championship, will take place in Denmark in 2011. The Nordic nation was awarded the honour by the UEFA Executive Committee in Nyon this week. Read the full story

Thorgerdur Katrin Gunnarsdottir, vice chairman of Iceland’s euro-sceptic ruling party, said in an interview with the Norwegian newspaper Klassekampen that Icelanders have no other choice in the financial crisis than to enter the European Union. Read the full story