The exchange rate index of the Central Bank shows the trade-weighted average exchange rate of certain foreign currencies against the króna. A rise in the index implies that the price of foreign currencies has increased in króna terms. Thus, an increase in the index indicates a decrease in the exchange rate of the króna, while a decrease in the index indicates an increase in the exchange rate of the króna. The weight of individual currencies is based on the respective countries' share of trade in goods and services, and it is annually reviewed to ensure that the composition always reflects the composition of the nation's external trade as closely as possible.
In addition to the exchange rate index, the Central Bank calculates and publishes additional exchange rate indices based on different assumptions regarding Iceland's foreign trade in goods and services.
See more details: Official exchange rate listings. Also see: Revision of currency baskets.