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June 30, 2009
Alcoa not involved in currency speculation
Because of recent media discussion about the Icelandic aluminium companies' purchase of Icelandic kronur, Alcoa in Iceland wishes to state the following:
Alcoa Fjardaal operates in an international environment, in accordance with international business agreements and in close collaboration with the Icelandic government, banks and electric energy producers. A special investment agreement is in force between Alcoa in Iceland and the Icelandic State, and the company's operations, from the beginning, have been in accordance with it. There was no change in this after the collapse of the banks in Iceland, or when the Central Bank of Iceland's rules on transactions with Icelandic kronur entered into force. Alcoa Fjardaal has completely followed the rules, as the bank can confirm. From the start of its operations in Iceland, the company has never engaged in any kind of speculation with the Icelandic krona.
From the beginning, Alcoa in Iceland has regularly consulted with the Central Bank of Iceland about the arrangement of the company's foreign currency transactions. Last spring discussions were initiated with the bank about transferring them in increasing measure to the country. Before last weekend, the management of Alcoa in Iceland met with the Central Bank Governor and other managers of the bank, where Alcoa offered to transfer all of its transactions with Icelandic kronur to Iceland.
Alcoa is a multinational publicly held company, and information about its operations is subject to international rules on securities exchange transactions. For that reason the company cannot divulge information to the public about its foreign currency transactions, but only to those stipulated by law.
Reykjavik, 30 June 2009.
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Exchange rates up and down
Today, one dollar equals around 123 Icelandic krona (ISK). When the investment agreement was signed in March 2003, the rate was around 80 ISK, and during construction it went down to about 60 ISK.
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