Seðlabanka

Seðlabanki Íslands, commonly translated as the Central Bank of Iceland, is Iceland's independent central bank. Its primary goal is to maintain price stability and contribute to financial stability in the Icelandic economy. The bank issues the national currency, the Icelandic króna, and holds Iceland's official foreign exchange reserves. It also manages monetary policy through instruments such as the policy interest rate and liquidity management, and may conduct operations in financial markets to influence money supply and short-term rates.

The bank oversees the operation and safety of payment and settlement systems, ensuring that transfers, clearing and settlements between banks are reliable. It acts as lender of last resort to financial institutions facing liquidity problems, within the framework of financial stability policy and regulatory cooperation with the Financial Supervisory Authority.

Although the central bank has primary responsibility for monetary policy, broader financial regulation and supervision in Iceland are shared or coordinated with other authorities. The bank operates with an independent mandate under Icelandic law and is governed by a governor and a board or monetary policy committee, supported by staff of economists and analysts. It publishes reports and data on inflation, growth, employment, and financial markets to inform policy and the public.

In everyday language, seðlabanki is the Icelandic term for the central bank, and is used to refer to the institution responsible for monetary policy, currency issuance, and financial stability in Iceland.