Metadata for interbank foreign exchange market

File name

Interbank market for foreign exchange

Purpose

Data are collected with the purpose of monitoring turnover in the interbank foreign exchange (forex) market and the Central Bank’s intervention in that market.

Sources

Interbank market agents report daily to the Central Bank of Iceland on their foreign currency transactions in the interbank market.

Regulatory authority

2. Terms and definitions

Interbank foreign exchange

The exchange rate of the Icelandic króna is determined in the foreign exchange market. The Central Bank and the financial companies that act as market makers are entitled to participate in the foreign exchange market. Parties with an unrestricted licence to act as intermediaries in foreign exchange transactions and buy and sell foreign currency pursuant to Article 8 of the Foreign Exchange Act, no. 87/1992, and Article 9 of Regulation no. 679/1994 can become market makers. The interbank foreign exchange market is open on business days between 9:15 hrs. and 16:00 hrs. The establishment and development of the Icelandic foreign exchange market is described in the August 2001 issue of the Central Bank’s Monetary Bulletin.

Total turnover

Total turnover is the sum of foreign exchange sales by all agents in the interbank foreign exchange market, including the Central Bank.

Net purchases of the Central Bank

Net purchases of the Central Bank are foreign exchange purchases less foreign exchange sales by the Central Bank in the interbank market.

3. Data processing

Daily data and monthly reports of total transactions, transactions by the Central Bank, and the Central Bank’s net purchases on the interbank forex market are processed by the Statistics & IT department of the Central Bank

4. Integrity

Interbank market agents report daily to the Central Bank on their foreign currency transactions; therefore, total purchases should equal total sales in the interbank market at any given time.

5. Revision of data

Data are revised if a reporter corrects previously submitted data and provides explanations for such corrections. Revised data are labelled as such until the following release date.

6. Time series and data frequency

Monthly data from January 2000 and daily data last couple of years are published on the Statistics pages of the Central Bank website.

7. Publication

Daily transactions on the interbank forex market are published on the Statistics pages of the Central Bank website (www.sedlabanki.is me lag. Monthly reports of the transactions are published on the Central Bank website according to a release calendar.