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Economic Focus - Where is the króna headed?

04-28-2008 10:38 PM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Kaupthing Bank

Kaupthing Research has issued an economic analyze for the outlook for the Icelandic Króna. The conclusion is: Good long-term outlook, but difficult short-term.

The ISK exchange rate bears the hallmarks of an overshooting that will readjust itself in the longer term.

In the short term, however, the króna faces greater uncertainty than before and the immediate direction of the krona is not necessarily up.

Near term developments will principally be determined by two factors. Firstly the funding conditions of Icelandic Banks. Secondly, whether CBI measures, such as the issue of CDs and increases in currency reserves will help normalizing the swap interest rate in the currency market.

Read the full report: http://www.kaupthing.com/lisalib/getfile.aspx?itemid=15134.

Contact Information

Thorhallur Asbjornsson - economist for Kaupthing Bank.
Email: thorhallur.asbjornsson@kaupthing.com
Tel. +354 444 6967

Kaupthing Bank
Borgartun 19
IS-105 Reykjavik
Iceland
Tel (+354) 444 7000
Fax (+354) 444 6009

About Kaupthing Bank

Kaupthing Bank is a Northern European bank offering integrated financial services to companies, institutional investors and individuals. These services include corporate and retail banking, investment banking, capital markets services, treasury services, asset management and comprehensive wealth management for private banking clients.

The Bank operates in all of the Nordic countries (Denmark, Finland, Iceland, Norway and Sweden) and in 6 countries in mainland Europe (the UK, Luxembourg, Belgium, Switzerland, Germany and the Isle of Man), as well as the US, the Dubai International Financial Centre (DIFC) and the Qatar Financial Centre (QFC). In Denmark, Kaupthing Bank operates under the name FIH Erhvervsbank. As of 31 December 2007 the number of full-time equivalent positions was 3,334 at Kaupthing Bank and its subsidiaries. www.kaupthing.com.

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