16 January 2024
Foreign exchange market, exchange rate developments, and international reserves 2023
The Central Bank of Iceland has posted a press release on the foreign exchange market, exchange rate developments, and international reserves in 2023. The króna appreciated by 1.5% in 2023, and turnover in the interbank foreign currency market contracted by 37% year-on-year. The Central Bank intervened in the market twice during the year to mitigate exchange rate volatility. The Bank sold foreign currency for a total of 5.5 b.kr. but did not buy any foreign currency. The exchange rate of the króna fluctuated less in 2023 than in the years immediately preceding. At the year-end, the Bank’s international reserves totalled 790 b.kr., or 20% of GDP.