Sunday, October 19, 2008

Iceland fixes crown at different rate to market

Friday's fix valued it at 151 to €1 and 112.69 to the dollar, slightly weaker than yesterday's levels. But the Reuters matching dealing system showed the crown at almost half that value in international trade at 275 to the euro.

"Effectively, you have a dual exchange rate which isn't that unusual in this sort of case," said one analyst covering Iceland, asking not to be named.

"What the government is doing is giving away foreign exchange locally at much cheaper than the market rate."

http://www.irishtimes.com/newspaper/breaking/2008/1017/breaking60.htm

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