According to a press release from Government Debt Management (GDM) dated 28 March 2011, purchasers of foreign currency in Central Bank of Iceland auctions were authorised to sell the Treasury their Treasury bills and bonds maturing before year-end 2013 in order to finance the purchases.
Based on the experience gained from the most recent auctions, it has been concluded that the risk of undesirable price fluctuation that gave rise to this authorisation is negligible. As a result, it has been decided to discontinue the practise of accepting Treasury bonds in connection with upcoming Central Bank foreign currency auctions.
Press release (Pdf)