I've slept on the question, which first surfaced in my consciousness as I closed my eyes: Reykjavik Energy is laundering a heck of a lot of dough for a muni operation serving about 200,969 residents and a couple hundred industrial-sized establishments; what's up with that?(prelude to an unscheduled audit?)
Reykjavik Energy enjoys certain financial services privileges that ICB stripped from certain financial services firms which had zealously scaled heights of the new national identity, financial capitol of the world. For a while, foreign currencies was hard to come by.
Reykjavik Energy has a continuous need for foreign currencies to service its obligations. And Reykjavik Energy is diversifying its industry capabilities and scale.
I suppose, the Best guvners --or the ICB agents-- would like to assure the shareholder-ratepayers what Reykjavik Energy stands to gain or lose from a certain, bespoke capital investment project in light of a recent development in the global capital market. 9 June 2010, following Reykjavik Energy Q1 quarterly statement:
Beijing on Wednesday signalled support for Iceland's economic recovery with a currency swap deal, worth more than $500m (€415m, £343m), that will increase the country's access to foreign currency and promote bilateral trade ties.... Mar Gudmundsson, governor of the Icelandic central bank, said the deal, which will allow Iceland to pay for Chinese imports in its own currency, the kronur, would promote economic ties. "It is another signal that the world is starting to look more favourably on us," he told the Financial Times. Mr Gudmundsson said China had been in talks with Iceland about ways it could assist recovery since the Icelandic banking sector collapsed in 2008 - a fact likely to be contrasted by Icelanders with the perceived bullying by the UK and other European countries over Icelandic debts.... The three-year currency swap, worth 3.5bn renminbi or 66bn [ISK] is the latest in a series of similar deals struck by Beijing as it seeks to increase international exposure to its currency and potentially move towards convertability. Read more...
Mar Gudmundsson, governor of the Icelandic central bank, said the deal, which will allow Iceland to pay for Chinese imports in its own currency, the kronur, would promote economic ties. "It is another signal that the world is starting to look more favourably on us," he told the Financial Times.
Mr Gudmundsson said China had been in talks with Iceland about ways it could assist recovery since the Icelandic banking sector collapsed in 2008 - a fact likely to be contrasted by Icelanders with the perceived bullying by the UK and other European countries over Icelandic debts....
The three-year currency swap, worth 3.5bn renminbi or 66bn [ISK] is the latest in a series of similar deals struck by Beijing as it seeks to increase international exposure to its currency and potentially move towards convertability.
Read more...
I suppose, Reykjavik Energy management seeks favorable arrangements with the ICB with respect to short-term --overnight to 30 day-- credit. Diversity is the key to economic and political evolution.
Wouldn't it be interesting if Reykjavik Energy pulled a NEW! GMAC, spinning its "investment activities" --which served the company well--into a commercial bank that the ICB would be pleased to recognise ;)
Asset-wise. Diversity is the key to economic and political evolution.
