Tuesday, October 28, 2008
In Defence of Currency (3)
Dorothy, Iceland, Bye Bye Iceland’s central bank lifted interest rates on Tuesday to 12 per cent from 18 per cent on the orders of the International Monetary Fund, highlighting the dramatic impact the organisation will have on the country’s ability to control economic policy. The move is an attempt to support the Icelandic krona, which has lost 70 per cent of its value during the crisis before trading in the currency halted. It is due to re-float within a matter of weeks, a development that is regarded as a key step in restoring Iceland’s international credibility.