Iceland to End Capital Controls After Economic Recovery

Iceland is considering ways to end capital controls after a vote in parliament to tighten financial regulations.
The government has outlined proposals to unfreeze assets worth 1,200bn krona ($9bn), subject to a 39% tax.

Capital controls, such as those to restrict money flowing in and 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.

“These proposals contemplate addressing these risks through a combination of the payment of a voluntary stability contribution together with other measures designed to attenuate the release of crowns that have been trapped behind the capital controls and augment the foreign currency reserves of the Central Bank of Iceland,” it said in a statement.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza