Central Bank of Iceland to Commence Regular Foreign Currency Purchases 2026 05 08

Central Bank of Iceland to commence regular foreign currency purchases international reserves markets and market operations interbank market for foreign exchange Listen

The Central Bank of Iceland has decided to resume regular foreign currency purchases in the interbank foreign exchange market. More specifically, the Bank intends to purchase 6 million euros per week. The Bank will buy 3 million euros shortly after the market opening each Tuesday and Thursday, and if the planned transaction date falls on a holiday, the purchase will be made on the following business day. The first purchase will take place on Tuesday 12 May 2026, and the last one is scheduled to take place on Thursday 15 October 2026. Based on the Bank’s plans, the total amount purchased will be 138 million euros, or the equivalent of 20 b.kr. The Bank will review the purchase programme as circumstances warrant.

The objective of the purchases is to meet the Treasury’s ordinary foreign currency need and ensure that the size of the international reserves remains above the minimum deemed desirable by the Bank. The reserves play an important role in promoting stability and contributing to the resilience of the economy.

Under current circumstances, the Bank does not expect the currency purchases to have a material impact on the exchange rate of the króna. The Bank will continue to intervene in the foreign exchange market as it deems necessary to mitigate short-term exchange rate volatility.

No. 5/2026

8 May 2026