Iceland: Enforcement of foreign exchange regulations
Clearstream Banking has been advised that the Icelandic Central Bank has issued a new temporary restrictive regulation on foreign exchange.
Its purpose is to stop, on a temporary basis, capital outflows which could weaken the Icelandic Krona (ISK).
As a result, it is prohibited for foreigners to invest in Icelandic securities if it involves the movement of capital outside of Iceland.
In addition, it is prohibited to carry out foreign exchange transactions or other movements of capital in foreign currency through withdrawals from ISK denominated bank accounts at domestic financial institutions or the Central Bank of Iceland.
Movement of capital due to the transfer or conveyance of funds out of Iceland in connection with the sale of direct investments is prohibited.
Clearstream Banking has been advised that this regulation will be revised by the Icelandic Central Bank, at the latest, by 1 March 2009, and that further local information on this new regulation can be downloaded from the links below.
Further information will follow in due course.