Revised Currency Baskets
The weights of currencies in the baskets used to calculate the broad and narrow merchandise- and trade-weighted indices have been updated. The weights are determined based on Iceland’s external trade in 2023. The last review was carried out at the beginning of 2024. The tables show the new baskets and the changes resulting from the review. The revised baskets will be used as of 1 January 2025 and will remain in use until the next annual review.
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Working paper no. 98: Productivity or privilege: Game-theoretic and experimental models of social class
The Central Bank of Iceland has published the working paper “ Productivity or privilege: Game-theoretic and experimental models of social class“ by Anna Gunnthorsdottir at the University of Arizona and the University of Iceland and Pálmar Thorsteinsson at the Central Bank of Iceland.
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Reduction in systemic risk buffer and increase in capital buffer for systemically important financial institutions
Published yesterday in the Law and Ministerial Gazette are new Central Bank of Iceland Rules on Systemic Risk Buffers for Financial Undertakings, no. 1414/2024, and new Rules on Capital Buffers for Systemically Important Financial Undertakings, no. 1415/2024. Both sets of rules were approved at a meeting of the Financial Stability Committee (FSN) on 3 December 2024.
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Minutes of the Monetary Policy Committee meeting of 18 and 19 November 2024
In accordance with the Monetary Policy Committee Rules of Procedure, the minutes of the Committee's most recent meeting have been published on the Bank's website. The minutes are published two weeks after the announcement of the Committee‘s decision.
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Statement of the Financial Stability Committee of the Central Bank of Iceland. December 2024
The Icelandic financial system is resilient. The systemically important banks’ capital and liquidity are strong, and they have ready access to market-based funding. High real interest rates, together with weaker growth in economic activity, could create challenges for the financial system in the coming term. Furthermore, elevated geopolitical risk could have unforeseen implications. As yet, there are few signs of arrears or financial distress among households and businesses.
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