Benchmark
Carry Traders' Love of Kronur Is Unrequited in Iceland
Central banker sees inflow to Treasuries as a `problem'
A customer collects Icelandic krona banknotes from an automated teller machine (ATM) in Reykjavik, Iceland.
Photographer: Arnaldur HalldorssonThis article is for subscribers only.
Foreign investors may be getting too comfortable in Iceland.
With capital controls about to be eased, investors are piling in to profit from the nation’s higher interest rates, driving the krona to its strongest level against the euro since Iceland’s economic collapse in 2008. They’re making the same bets that just about drove the country off the financial map only seven years ago.