Currency restrictions on the Icelandic Krona completely lifted today

From today onwards there will be no limits on currency transactions with the Icelandic Krona. The private sector and institutional investors such as the Icelandic pension funds are now able to invest in foreign currency once more and to transfer funds in and out of the country with out the restrictions that came to be in the wake of the 2008 financial crash in Iceland.

The value of the Icelandic Krona (IKR) dropped briefly by by 3-4% yesterday after the government announced the final stage in the complete lifting of the capital controls, which were enforced in the wake of the 2008 financial collapse.

As a result the value of the Króna fell by 3-4% on Monday morning. The value of Euro in Icelandic Króna rose by 2.91% and that of the US Dollar by 2.85%. The Euro is now 118.4 ISK and the Dollar 110.9 ISK

The flourishing tourist boom in Iceland in recent years has resulted in steady strengthening of the ISK and in the past months economic growth and a substantial surplus in the balance of payments has reinforced the currency further. However the export industries in the country have been calling for a devaluation of the ISK to improve their competitiveness.

Sunday afternoon’s press conference with Prime Minister Bjarni Benediktsson, The Minister of Finance and the Director of the Central Bank informed that the last remaining components of the capital restrictions were scheduled to be abolished today, Tuesday 14 Mars.