Iceland Central Bank (Sedabanki) announces new rules on foreign exchange that provide for liberalization of capital controls on households and business capital controls
- Made changes to restrict undesirable inflows of foreign denominated capital that could create systemic risk through carry trade
- Capital controls on the country's individuals, firms and pension funds have been lifted with effect on Tuesday
- Central bank expects to acquire the majority of Krona help offshore, have acquired ~ISK90B from offshore holders of the currency
- Will buy offshore Krona using foreign exchange reserves, which currently are at an all time high