STOCKHOLM, Oct 31 (Reuters) - Iceland's central bank said on Saturday it will allow investors to convert sales proceeds from investments made after November 1 into foreign currency, its first easing of strict capital controls put in place last year.
It said new investments must be registered with the central bank for the transfer of any proceeds out of Iceland to be authorised. This will help ensure that it can track inflows and strengthen foreign exchange reserves through market intervention 'if circumstances permit', it said in a statement.
The measures were seen allowing a freer flow of money into and out of the island's economy, which is struggling to get back on more normal footing following the collapse of the country's banking system and currency.
The central bank has said it would lift capital controls only gradually to ensure the stability of the Icelandic crown.
Previously, non-residents had been fully authorised to transfer foreign currency made from interest and dividends on investments in Iceland. Keywords: ICELAND CBANK/ (Reporting by Mia Shanley; Editing by William Hardy; mia.shanley@thomsonreuters.com; +46-8-700 1004) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
It said new investments must be registered with the central bank for the transfer of any proceeds out of Iceland to be authorised. This will help ensure that it can track inflows and strengthen foreign exchange reserves through market intervention 'if circumstances permit', it said in a statement.
The measures were seen allowing a freer flow of money into and out of the island's economy, which is struggling to get back on more normal footing following the collapse of the country's banking system and currency.
The central bank has said it would lift capital controls only gradually to ensure the stability of the Icelandic crown.
Previously, non-residents had been fully authorised to transfer foreign currency made from interest and dividends on investments in Iceland. Keywords: ICELAND CBANK/ (Reporting by Mia Shanley; Editing by William Hardy; mia.shanley@thomsonreuters.com; +46-8-700 1004) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
© 2009 AFX News
