Country Report Iceland July 1998 Main report

Foreign trade & payments: Krona halts its slide against the dollar

Following a considerable weakening of the krona against the dollar in the first quarter, the Icelandic currency bounced back in April, regaining more than one-third of its depreciation. The continuing weakness of the D- mark saw a further appreciation vis-a-vis that currency, while depreciation against sterling has been uninterrupted throughout 1998.

Exchange rates (period averages) 1997 1998 Year 1 Qtr 2 Qtr 3 Qtr 4 Qtr Year 1 Qtr 2 Qtr(a) Ikr:DM 42.05 40.51 39.67 40.77 40.89 39.73 39.66 Ikr:$ 69.77 70.53 71.74 71.58 70.90 72.31 71.78 Ikr:o 114.47 117.08 116.56 118.84 116.11 118.55 119.63 Real effective (1990=100) 90.00 91.20 92.00 91.20 91.10 93.00 n/a (a) April only. Source: IMF, International Financial Statistics.

© 1998 The Economist lntelligence Unit Ltd. All rights reserved
Whilst every effort has been taken to verify the accuracy of this information, The Economist lntelligence Unit Ltd. cannot accept any responsibility or liability for reliance by any person on this information
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