On 2 August, the Central Bank of Iceland offered to purchase 72 million euros against payment in Treasury bonds. The resulting auction, which took place between 10:00 and 11:00 hrs. today, is an element in the removal of restrictions on movement of capital as set forth in the Central Bank’s capital account liberalisation strategy, published on 25 March 2011.

Offers were submitted for a total of 3,400,000.00 euros, and all offers were accepted in full. The auction was structured with a single-price format, so that all accepted offers were made available to primary dealers at the same price, which was set at 210.00 kr. per euro. Purchasers receive indexed Treasury bonds as payment for the foreign currency. Thus a total nominal amount of 711,874,251.00 kr. was sold in the indexed Treasury series RIKS 30 0701.

Further information can be obtained from Már Guðmundsson, Governor of the Central Bank of Iceland, at tel: +354 569-9600.

No. 23/2011

August 16, 2011