Effective Monday 8 December 2025, the Central Bank of Iceland will discontinue its programme of regular foreign currency purchases.
The Bank began a programme of regular foreign currency purchases in the interbank foreign exchange market on 15 April 2025, buying a total of 6 million euros per week. The amount purchased was increased to 12 million euros per week with a press release dated 12 June but was then reduced back to 6 million euros with a press release dated 14 November. The main objectives of the currency purchases were to increase the domestically financed share of the Bank’s international reserves and to meet the Treasury’s need for foreign currency.
Since 15 April, the Bank has bought 336 million euros (the equivalent of 48.3 b.kr.) through the regular purchase programme. Over the same period, it has also bought 93 million euros (13.3 b.kr.) in accordance with its intervention policy. During the period, the Bank has therefore bought a total of 429 million euros (61.6 b.kr.). The Bank’s target for its international reserves has been to hold reserves equalling at least 120% of the International Monetary Fund’s reserve adequacy metric (RAM). The international reserves, which now stand at 986 b.kr., have reached the Bank’s desired target level.
The Central Bank will continue its policy of intervening in the foreign exchange market as it deems necessary to mitigate short-term exchange rate volatility.
Press release no. 21/2025
5 December 2025