Return of the Currency Peg
Iceland’s central bank will introduce a currency peg for the island’s crown at a value of 131 per euro
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jck [at]
aleablog [dot] com
October 7th, 2008 at 2:50 pm
On comment I saw said the currency was trading at 200 so that’s not a very useful peg…
October 7th, 2008 at 3:04 pm
apparently the market has split in 2, onshore and offshore. I don’t follow iceland but i heard than the offshore traded way off with some panic trades well above 200 yesterday.
October 7th, 2008 at 3:40 pm
You’d think an instant arb would happen..
October 7th, 2008 at 5:24 pm
yes, except that onshore/offshore are disconnected, want to be short with a near-bankrupt icelandic bank?
what happens if they pop? you are naked long offshore and that’s not an arb anymore.