Iceland to end capital controls from 2008 financial crisis

0

Iceland discretion lift all capital controls on its citizens, businesses and pension funds from Tuesday.

Capital commands, such as those to restrict money flowing in and out of the country, were interposed in 2008 after the country’s biggest banks collapsed.

The government deliberate ons the economy has recovered sufficiently to end controls.

Controls were imposed after the fall through of the country’s three biggest banks – Glitnir, Landsbanki and Kaupthing.

At the anyway time Iceland’s national currency, the krona, fell in value.

‘Steady approach’

The removal of the capital controls – which helped stabilised the currency and conciseness during the country’s financial crash – represents the completion of Iceland’s home-coming reciprocity to international financial markets.

The move has also been supported by updates to the disregards on foreign exchange and special reserve requirements for new foreign currency inflows.

“Iceland’s aware, measured approach to lift capital controls was developed and approved with home and international support,” said Benedikt Johannesson, minister of finance and commercial affairs.

“As a result of this structured plan, our diversified economy is larger than in any case before and expected to continue to grow at a robust pace this year.”

Central controls were implemented in 2008, with the support of the International Cash Fund (IMF), to shield the economy from severe depreciation.

For the past year, the regime and Central Bank of Iceland have been lifting controls through what they say has been an “incremental, measured process that focused on care for the currency, addressing a balance of payments problem and tempering shocks to the Icelandic conciseness”.

Leave a Reply

Your email address will not be published. Required fields are marked *