Icelandic króna
The
króna (plural
krónur) is the name of the
currency used in
Iceland. The name, meaning "crown", is related to that of other
Nordic currencies (such as the
Swedish krona and
Norwegian krone). The
ISO currency code is ISK.
The Icelandic króna separated from the
Danish krone after the dissolution of the
Scandinavian Monetary Union at the start of
World War I and Icelandic autonomy from
Denmark in
1918,with full independence in
1944. Since
1961, circulation of the Icelandic króna has been controlled by
Seðlabanki Íslands, the Central Bank of Iceland. In
1981, the Icelandic króna was revalued, with 100 old krónur being worth 1 new króna.
Technically, the króna is still composed of 100
aurar (singular
eyrir), although in practice coins of value less than one króna have not circulated for many years. In September 2002,
Davíð Oddsson, the Icelandic
Prime Minister at the time, signed two regulations decreeing that all monetary amounts on invoices and financial claims should be stated and paid in whole krónur only, and that coins with a value of less than one króna should be recalled from circulation.
As of 2005, the following notes and coins (issued since the 1981 revaluation) are legal tender:
*Notes: 5000, 2000, 1000, 500, (100, 50, 10 krónur)
*Coins: 100, 50, 10, 5, 1 krónur
As of October 1st 2003, Icelandic banks no longer accept the 5, 10 and 50 aurar coins. Notes of 100 krónur or less no longer circulate, as they have been withdrawn by the central bank. As of 2006, the vast majority of banknotes in circulation are of the 500, 1000, and 5000 denominations (these generally being the only notes dispensed in ATMs, for example). 2000 krónur notes still exist, but these are unusual, and are at times referred to as "tourist money" by the local population.
The overall level of technological sophistication is noteworthy in Iceland. Iceland has, for example, among the highest per capita computer usage in the world (far higher than the UK or USA). The saturation of technology in Iceland has had ramifications in their monetary system; a very large percentage of all transactions in Iceland take place through electronic forms of payment, such as debit and credit cards. It is also worth noting that the largest denomination banknote, the 5000 krónur note, represents a value somewhat less than $100 US. This, coupled with the generally extremely high prices in Iceland (a mid-range dinner for two in Iceland, without drinks or desert, can easily exceed 5000 krónur), means that banknotes are not issued in sizes conducive for larger transactions. This effect may synergize the Icelandic move towards a semi-cashless economy.
Iceland is a fully European nation in culture and government (it has the typical socialism-flavored capitalist government of the Nordic area), and is a signatory to many pan-European agreements, including the
Schengen Treaty providing for free travel amongst most of the western European countries. Iceland, however, does not use the Euro currency. In this, they join the other Nordic countries (and the
United Kingdom). Support for adopting the Euro as the national currency appears to be uniformly low throughout the Nordic countries.
As it stands, the Icelandic currency is a fully convertible but low-volume world currency, strongly managed by its central bank, with a high degree of volatility not only against the US and Canadian dollars, but also against the currencies of the other Nordic nations. For example, during the first half of 2006, the Icelandic króna has ranged from just about fifty (50) per US$ to just about eighty (80) per US$.
Tourists to Iceland will generally find little need or desire for Icelandic currency, as even taxis are prepared for electronic payment. Other world currencies are not accepted in Iceland (with the exception of the international airport at Reykjavík/Keflavík, where the US dollar and other currencies are accepted by all merchants).
Coins consisted of 1, 2, 5, 10, 25, 50 aurar, 1, 2, 5, 10, and 50 krónur. Old banknotes' denominations consist of 1, 5, 10, 25, 50, 100, 500, 1,000 and 5,000 krónur.
*
Scandinavian Monetary Union*
Ron Wise's World Paper Money Homepage - Scans of Icelandic notes
*
Don's World Coin Gallery*
Vitaly Getmansky coins
