Iceland: Further steps towards capital account liberalisation
The Government of Iceland today announced multiple amendments to the capital controls regulations currently in place.
Details of how these changes will impact Clearstream Banking customers and LuxCSD customers holding offshore Krona assets are not yet confirmed, however Clearstream Banking is in dialog with the Central Bank of Iceland to clarify how the changes translate into current processes and limitations in place.
The Central Bank of Iceland has in addition announced that there will be a new exchange opportunity for current holders of offshore denominated Krona. This means that Clearstream Banking customers and LuxCSD customers holding ISK (certificates of deposit instruments (CDs) i.e. IS0000027068), may be offered, by the Central Bank of Iceland, to exchange their balance in those securities against EUR. However, please note that at this stage Clearstream Banking has not yet received full terms of the exchange rate, the timeframe or the operational and compliance processes involved. Clearstream Banking customers and LuxCSD customers will be informed of these details as soon as the exchange conditions are confirmed.
New Rules on Foreign Exchange as published by the Central Bank of Iceland are available on the Central Bank of Iceland website.
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