19:47 GMT11 August 2020
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    Icelandic Finance Minister said that Reykjavik will look into options of switching to a fixed exchange-rate system as freely floating krona is "untenable".

    MOSCOW (Sputnik) Reykjavik will look into options of switching to a fixed exchange-rate system as freely floating krona is "untenable," Icelandic Finance Minister Benedikt Johannesson said Saturday.

    "Is the status quo untenable? Yes. Everybody agrees on that. We’d like to have a policy that would stabilise the currency. It’s really not good when a currency fluctuates by 10 percent in the two months since we took over," Johannesson told the Financial Times newspaper, adding that Reykjavik would consider pegging their national currency to either the euro or the pound.

    A new government in the country was formed in January.

    Johannesson dismissed previous suggestions of linking the krona to the Canadian dollar or the Norwegian krona as "absurd ideas," as both mentioned currencies depreciated recently while Iceland's appreciated.

    Iceland was hit hard by the 2008 financial crisis that led to the default of three of major privately owned commercial banks.

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