The Central Bank has been active in the currency market in January Featured

The Central Bank of Iceland The Central Bank of Iceland

The Icelandic króna (ISK) was very stable in January. It gained 0.8% against the EUR and stood at ISK 157.1 for the EUR at the end of the month as compared with ISK 158.3 at the end of December. Of the EUR 154.8 million turnover in January, the Central Bank purchased EUR 67.8 million (ISK 10.5 billion), or 45% of total turnover in the month.

It looks like the central bank wants to keep the exchange rate at the current level. The Icelandic krona has been appreciating in January, for example because of a great increase in tourism, but the central bank has been buying foreign currency to keep the exchange rate level and preventing the króna from appreciating too much. This helps the export sector in Iceland, as well as tourism.

Total catch of Icelandic vessels in January 2014 decreased by 22.9% at constant prices compared with January 2013 but total catch measured in tonnes decreased by 57.4% in January between years. This could be one of the reasons why the central bank doesn't want the currency to appreciate too much.

Statistics Iceland

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