The central bank of Iceland has increased overnight borrowing rates to 15.5%, meaning you can get some damn high yields investing in their currency. Those numbers piqued my interest.
I tried looking for ways to get into one of the nation’s three leading banks, Kaupthing, Glitnir and SPRON, as a US-citizen. Kaputhing isn’t available for the US, Glitnir makes you go to your local bank around the corner, in Iceland, to sign up, and SPRON didn’t seem to have any info. I know there’s foreign currency exchange sites out there for the individual investor, but I’m not sure which ones are reputable…most look sketchy to me.
I do know at least that, per this NYT article,investing in foreign currency can be dicey. The market is volatile, you can be subject to weird laws, currency exchange rates will eat into your earnings, and you can be penalized for unwinding your position early. Any more informed Consumerist readers care to share how to dip one’s toes in the frigid waters of the króna without getting devoured?