Central Bank of Iceland chief warns of foreign exchange intervention risks


The governor of the Central Bank of Iceland, Már Guðmundsson, on July 14 highlighted risks posed by the deviation of the exchange rate from the level implied by economic fundamentals, but suggested that policy responses to this problem could fragment the financial system.

Speaking at a conference on fragmentation in the global economy in Turkey, Guðmundsson said: "The exchange rate often seems to be as much a source of shocks and instability as a tool for adjustment and stabilisation."

He argued

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact [email protected] or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact [email protected] to find out more.

To continue reading...

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here: