Capital controls on the Icelandic kronor can start to be removed towards the end of this year, according to Svein Harald Oygard, governor of the central bank, but in the long run a new currency regime should be devised.

“We point to the challenge,” the Norwegian-born interim governor said in an interview last week. “Has a separate kronor been a shock absorber or itself a source of shocks? I do believe the latter has been more significant than the former.”