The Central Bank of Iceland has begun publishing data on the domestic commercial banks’ foreign exchange transactions with the Icelandic króna. The data show monthly turnover in the foreign exchange market, including both purchases and sales of Icelandic krónur in exchange for foreign currency in spot transactions. [1] Turnover is itemised by key counterparty group and currency.
For a long while, the Central Bank has published data on daily turnover in the interbank foreign exchange market, in which the Central Bank and market makers are participants. Transactions in the interbank foreign exchange market constitute only a small share of total trading with the Icelandic króna, however. New data will provide better insight into the foreign exchange market in Iceland and will give a more comprehensive overview of market turnover.
The data, which will be published on the 15th day of each month is available here: Foreign exchange transactions.
Counterparty classification and currency distribution in the new data
Data are submitted by the four commercial banks: Arion Bank hf., Íslandsbanki hf., Landsbankinn hf., and Kvika banki hf. They contain all of the banks’ spot trades with the Icelandic króna, including the transactions they conduct with one another in the interbank market. For present purposes, spot trades are defined as transactions between two currencies, with the exchange rate determined on the trade date and settlement taking place within two business days. Turnover figures are published in Icelandic krónur.
The data are broken down into the following counterparty groups:
· Domestic non-financial entities
· Market makers in the interbank market
· Central Bank of Iceland
· Pension funds
· Other domestic financial institutions
· Non-residents
The data are also itemised according to the currencies used in transactions with the Icelandic króna:
· Euro (EUR)
· US dollar (USD)
· Other currencies
Over the first seven months of 2026, total turnover in spot transactions undertaken by domestic commercial banks in which Icelandic krónur were converted to another currency totalled 2,498 b.kr. The banks’ counterparties bought foreign currency from the banks in the amount of 1,294 b.kr. and sold foreign currency in the amount of 1,204 b.kr. The difference between the two figures stems in part from derivatives transactions that are not included in the turnover figures. Total monthly turnover averaged 357 b.kr., or 7% of year-2025 GDP.
Transactions with the euro constituted 56% of total turnover in the first seven months of 2026. Transactions with the US dollar accounted for 31% of turnover, and transactions with all other currencies came to 13%.
Turnover in the interbank foreign exchange market
According to Rules no. 600/2020, participants in the formal interbank foreign exchange market are the three market makers – Arion Bank, Íslandsbanki, and Landsbankinn – and the Central Bank. The new data contain information on market markers’ interbank market turnover under the item Market makers in the interbank market. Nevertheless, the Bank will continue to publish daily information on turnover in the interbank foreign exchange market.
Included in the new data is information on both buying and selling sides of transactions. This is because when one market maker buys foreign currency for krónur, another market maker sells that foreign currency for a corresponding amount. In order for these figures to be comparable to daily turnover figures, total turnover in such transactions must be divided by two.
[1] Derivatives transactions with the króna, such as forward contracts and currency swaps, are not included in the published data.