A seminar on the CBI‘s liquidity management system and a potential optimum taking into account different considerations will be held at the Central Bank of Iceland on 5 March 2019 at 15:00 in the conference room Sölvhóll.

Speaker: Ragnheiður Jónsdóttir, economist

Abstract: The seminar will look at different approaches to liquidity management systems for central banks. The various origins of surplus reserves will be discussed and the implications for liquidity management (and the conduct of monetary policy). The reasons for the steep accumulation of surplus reserves in the Icelandic banking system in the years following the financial crisis are considered and fluctuations are found to be likely to persist in a small, open economy, not least one with a managed float. The liquidity management systems in Sweden, Norway and Denmark are discussed and some conclusions drawn on the optimal system for Iceland taking into account different considerations.

The seminar will be in Icelandic.