Iceland to end capital controls by 2008 financial crisis

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The decision has been made by the government as well as also Central Bank of Iceland

Iceland will lift all capital controls on its citizens, businesses as well as also pension funds by Tuesday.

Capital controls, such as those to restrict money flowing in as well as also out of the country, were imposed in 2008 after the country’s biggest banks collapsed.

The government thinks the economy has recovered sufficiently to end controls.

Controls were imposed after the collapse of the country’s three biggest banks – Glitnir, Landsbanki as well as also Kaupthing.

At the same time Iceland’s national currency, the krona, fell in value.

‘Measured approach’

The removal of the capital controls – which helped stabilised the currency as well as also economy during the country’s financial crash – represents the completion of Iceland’s return to international financial markets.

The move has also been supported by updates to the rules on foreign exchange as well as also special reserve requirements for completely new foreign currency inflows.

“Iceland’s careful, measured approach to lift capital controls was developed as well as also approved with domestic as well as also international support,” said Benedikt Johannesson, minister of finance as well as also economic affairs.

“As a result of This particular structured plan, our diversified economy will be larger than ever before as well as also supposed to continue to grow at a robust pace This particular year.”

Capital controls were implemented in 2008, with the support of the International Monetary Fund (IMF), to shield the economy by severe depreciation.

For the past year, the government as well as also Central Bank of Iceland have been lifting controls through what they say has been an “incremental, measured process in which focused on protecting the currency, addressing a balance of payments problem as well as also tempering shocks to the Icelandic economy”.

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