Derivatives Traders Targeted in Iceland Currency Experiment

Iceland is tempering its goal of lifting capital controls as the new government says it will probably keep some restrictions to stop currency speculation.

“It’s possible that Icelanders will, in the same way as other countries are contemplating, impose limits on derivative trades with the currency,” Finance Minister Bjarni Benediktsson said in an interview. The nation may also “place a limit on Icelandic banks gathering foreign exchange in foreign branches. This can be considered as some kind of restriction on capital flows, but we can also view this as a normal part of managing the currency.”