Central Bank of Iceland’s Rules on Special Reserve Requirements

On 4 June the Central Bank’s Rules on Special Reserve Requirements came into force. Please read these rules carefully and check who is subject to special reserve requirements under these rules. A reserve requirement may exist in respect of new foreign currency inflows into deposits in Icelandic krónur which bear 3.00% annual interest or more. Balances on deposits in foreign currency accounts with domestic financial undertakings dating from before 5 June 2016, export revenues, and other foreign currency subject to repatriation requirements are not considered new inflows of foreign currency.

The special reserve requirement shall be satisfied by deposit of the special reserve amount to a special reserve account within two weeks of the date the new inflows of foreign currency are converted to domestic currency.

Further information can be obtained from the Central Bank of Iceland or by contacting Arion Bank at arionbanki@arionbanki.is.