02 March 2009

Capital control not lifted at the present time

According to the Rules on Foreign Exchange, no. 1130/2008, the Rules must be reviewed no later than March 1, 2009. After considering the necessary preconditions for lifting the capital controls, the Central Bank of Iceland has decided that these have not been sufficiently established.

The next review of the Rules on Foreign Exchange will occur no later than September 1, 2009, as is stated in the Act on Foreign Exchange, no. 87/1992, with subsequent amendments. The Central Bank of Iceland regularly assesses the effectiveness of the controls as part of its overall monetary policy and is formulating a strategy for their gradual, systematic removal. An assessment of the fulfilment of requirements for capital account liberalisation is also one of the subjects of consultation during the current IMF 1st Review Mission.

No. 6/2009
March 1, 2009