Press

Capital controls were imposed after the 2008 financial crisis to save the crown from collapse. But, though these have given the economy some time to recover, the restrictions have left the country and its businesses isolated. "We need to have an adequate level of foreign exchange reserves, to have a resilient financial sector that can withstand potential volatility. It is going in the right direction, but these are early days," Mr Gudmundsson said. The central bank had implemented regulations and tools like restrictions on deposit-taking in foreign branches and was working to introduce limits on forex exchange imbalances and lending to 'unhedged' borrowers, the Governor added. (Mail Online UK)