The exchange rate of the króna weakened by 0,55% today and so is the currency index rate 238,35 points. The American Dollar is at 128,38 króna, euro 183,80 króna, the GBP 210,10 króna and the Danish króna is 23,695 króna according to the currency desk of Islandsbanki.

News Article by noname
Translated by Anya
Original Article in Icelandic

There has still not been any visible interest amongst the foreign owners of the glacier bonds here in Iceland to trade them for long term bonds in the Icelandic companies that have income in foreign currencies.

According to the information from the central bank of Iceland is this an indicator of that the owners of the foreign bonds are not very impatient since there have not been any trades at all.

The net sale of the central bank of Iceland equals 2,5 billion króna last month which is roughly 40% of the total turnover of the market. The central bank has not sold this much currency in one month this year. This is in the morning corn of the analyzing department of Islandsbanki. In the recently published numbers of the central bank about the bank market for currency on the first half of the year was the total turnover of that market close to 6,2 billion króna in June.

Once again people are able to buy and sell Icelandic króna in British airports. According to the website IceNews tourists should avoid trading with the exchange booths there since there is a big difference in the buy and sell rates.

According to the website you will get 187 króna for the pound at the London airports. Those wanting to buy Pounds have to pay 245 króna per pound. The difference 25%.

 In Iceland you now get 210 króna for every pound and those selling króna will have to pay 212 króna for a pound. The difference is 0,5%.

Gylfi Zoega professor of economics at the University of Iceland says that it is not realistic to decide a fixed exchange rate when there is not foreign currency reserves to defend it. "We are supposed to follow the plan we approved in co-operation with the IMF and try to getthe goals set foward there."

This has been discussed at meetings of parties of the employment market and the government and their sub-committees about so-called stability pact, to fix the exchange rate of the króna and aim for the currency index number 16ö-170. The currency index number is now 230.

The  money policy committee of the central bank of Iceland has decided to lower the policy rates by 2,5 percent to 13,0 percent. The interests of day loans are also lowered by 2,5 percent but other interests of the central bank lower by three percent.

At 11 am will be a reasoning for the interests decision and the matter of the money matters introduced at a meeting with reporters and specialists of various institutions, university department and organizations because of the decision of he money policy committee about lower the policy rates by 2,5 percent.