The Central Bank of Iceland, known as Seðlabanki Íslands, is the primary financial institution responsible for managing the country's monetary policy. Established in 1961, its main objectives include maintaining price stability, ensuring financial stability, and managing the national currency, the Icelandic króna. The bank also oversees the banking system and acts as a lender of last resort. It plays a crucial role in regulating inflation and supporting the overall economy of Iceland. Additionally, the Central Bank of Iceland manages the country's foreign exchange reserves and implements policies to promote sustainable economic growth.