In May 2026, the Central Bank of Iceland began buying foreign currency in the interbank market, in the amount of 6 million euros per week, as is explained in the Bank’s press release of 8 May 2026. Since then, the Bank has bought currency for the equivalent of 15 b.kr. The principal objective of the purchases is to meet the Treasury’s ordinary foreign currency needs and thereby maintain the international reserves. Sufficient reserves play an important role in promoting stability and contributing to the resilience of the economy.
Because the Treasury’s foreign currency need has proven greater than previously estimated, the Bank has now decided to increase its purchases to 12 million euros per week, beginning on 15 September 2026.
The Bank will therefore purchase 3 million euros shortly after the market opens on Tuesdays, Wednesdays, Thursdays, and Fridays. The Bank will review the purchase programme as circumstances warrant, but all else being equal, the programme is set to end on Thursday 15 October 2026.
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 conduct transactions in the foreign exchange market as it deems necessary to mitigate short-term exchange rate volatility.