Europe Economy

Iceland to Supports Crown Via Market Intervention

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central bank said on Wednesday it planned to support the crown currency via foreign exchange market interventions after it temporarily suspended its regular foreign exchange purchases from market makers.

Since September 2010, the bank had purchased foreign currency on a weekly basis. It in total bought 20 billion crowns ($157.47million) of currency and sold foreign currency worth 3 billion crowns. But it in January suspended the purchases as the crown had fallen.

"In view of these conditions, the Central Bank has decided to suspend its program of regular foreign currency purchases for the time being and support the crown through foreign exchange intervention," it said a statement after a monetary policy meeting where it kept its key rate steady at 6.0 percent.

It also said there was considerable uncertainty about the exchange rate.