The Central Bank of Iceland said on Wednesday Asgeir Jonsson was appointed as its governor.

Iceland Prime Minister Katrin Jakobsdottir named Jonsson for a five year term that starts on Aug. 20, the central bank said in a statement.

Jonsson will replace Mar Gudmundsson as governor.

Jonsson, who obtained a doctoral degree in economics from Indiana University in the United States in 2001, has previously chaired a task force on the review of Iceland's monetary policy framework.

From 2004-2011, Jonsson was the chief economist and head of research at the collapsed Kaupthing Bank, which was later reborn as Arion Bank.

His appointment comes about a month after Iceland's central bank cut its key deposit rate to the lowest since 2011.