The new Foreign Exchange Act of 2021 removed the last of the capital account restrictions imposed in November 2008. Foreign exchange transactions, and cross-border payments and capital movements shall be free unless otherwise provided by law. In emergencies that entail a severe risk that financial stability will be jeopardised by unrestricted movement of capital, and other measures cannot be taken, the Central Bank of Iceland can, subject to Ministerial approval, set rules that could, among other things, restrict or halt specified categories of capital movements or cross-border payments for up to 60 days, as well as requiring the repatriation of foreign currency. 