Execution of controls plan ‘key’

Fitch Ratings

Fitch Ratings Photo: Hjörtur

Iceland’s plan to lift capital controls, announced by the government on Monday, has been hailed as ‘positive’ by FitchRatings, one of the ‘Big Three’ credit-rating agencies.

Execution, however, remains key and the agency warns that “[t]he impact on Iceland's sovereign rating (BBB/Positive) will depend on the effective implementation of the strategy over the months ahead, in a context of monetary and exchange rate stability.”

Fitch warns further that “[t]he process of capital control liberalisation - even if the strategy is well thought out - inevitably carries some risks”, but is generally upbeat about the likely consequences of the various strands of the government plan.

Iceland’s Fitch rating was raised from BBB/Stable in January, a decision “partly driven by the agreement to extend maturities on bonds issued to failed bank creditors which will cut Iceland’s private foreign-debt service burden over the next three years”.

The next review of Iceland’s sovereign rating is due on 24 July.

The full FitchRatings press release can be found here.




3 °C



4 °C

Rain showers


7 °C

Warning: Yellow More

Exchange rates

USD USD 119.77 EUR EUR 135.50
GBP GBP 154.80 DKK DKK 18.16
NOK NOK 13.89 SEK SEK 12.80
CHF CHF 119.26 JPY JPY 1.08
ISK price of selected currencies, according to the official exchange rate of the Central Bank of Iceland. Updated daily.