Central Bank of Iceland Extends Regular Currency Purchase Programme

Central Bank of Iceland extends regular currency purchase programme

international reserves

currency transactions

markets and market operations

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The Central Bank of Iceland will continue its programme of regular foreign currency purchases in the interbank market until 30 November 2026. The amount bought each week will be reduced from 12 million euros to 6 million, beginning on 16 October. The purchases, each in the amount of 3 million euros, will take place shortly after the market opening on Tuesdays and Thursdays.

The principal objective of the foreign currency purchases is to meet the Treasury’s ordinary foreign currency needs and thereby maintain the Central Bank’s international reserves. The reserves play an important role in promoting stability and contributing to the resilience of the economy. The need for regular purchases will be reviewed as circumstances require.

The Bank will continue to conduct transactions in the foreign exchange market in accordance with its foreign exchange market intervention policy, to mitigate short-term exchange rate volatility when conditions warrant it.