In These New Times

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Iceland says pegs crown to Euro

Posted by seumasach on October 8, 2008


STOCKHOLM/REYKJAVIK, Oct 7 (Reuters) – Iceland’s central bank said on Tuesday it would peg the island’s crown to a basket of currencies at a level of 131 per euro effective immediately, confirming earlier reports.

“The Central Bank of Iceland has decided to peg the crown to a basket of currencies at the level of 131 to the euro,” Sedlabanki spokesman Stefan Stefansson told Reuters.

“It is to make the interbank market for the currency work.”

Separately, the Sedlabanki said in a statement in Icelandic that the purpose was to stabilise prices in the short term.

It said it would provide more information on the currency markets and the value of the crown in the coming days.

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