Iceland's central bank announced its first easing of strict capital controls put in place a year ago with a decision on Saturday to allow investors to move proceeds from investments made after November 1 overseas. The measures will allow a freer flow of money into and out of the island's economy, which is struggling to get back on more normal footing following the collapse of the banking system and currency last year.
Ingibjorg Guddjartsdottir, head of the Capital Control Surveillance Unit at the central bank, told Reuters that all investments made after November 1 would be "fully convertible and transferable" out of the country.
Previously, non-residents had been fully authorised to transfer foreign currency made from interest and dividends on investments in Iceland. All new investments will have to be registered with the central bank for the transfer of proceeds out of Iceland to be authorised. This will help ensure that the Sedlabanki can track inflows and strengthen foreign exchange reserves through market intervention "if circumstances permit".
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