The Icelandic króna has fallen 6% in respect to the Euro this month.
This welcome stability is thought to be due to several factors, not least of which is increased confidence in the Icelandic economy.
“We’re looking at one of the worst springs in the last five years or so,” said Páll L. Sigurjónsson, the managing director of Kea Hotels.
Initial responses to a proposal to take the 5,000 and 10,000 króna bills out of circulation to counter tax evasion show that society is not yet ready for such a radical idea, according to Iceland’s Minister of Finance Benedikt Jóhannesson.
As part of the government’s plan to lift capital controls in Iceland, the country’s Central Bank will hold a foreign currency auction on June 16.
The majority of Icelanders would like to do away with the Icelandic króna and adopt a new currency, regardless of whether Iceland joins the European Union.
The Central Bank of Iceland has recommended an exemption from the Foreign Exchange Act be given to the failed banks, Kaupthing hf., Glitnir hf., and LBI hf.
Lee Buchheit, a lawyer given the label ‘Crusader for Financially Stricken Countries’ by the Financial Times, is well-known in Iceland.
A bill on the removal of capital controls will be put to Alþingi parliament next week, according to Minister of Finance Bjarni Benediktsson.