Iceland is a country where the unique landscape. The active volcanoes carve their own features into the land, scalloping fjords along the coast and creating craters inland. This Nordic land depends upon fishery for its economy. Iceland is also a leader in ecotourism. The coin of the economy is the kroná – plural kronur. The ISO abbreviation is ISK. It goes at 100 aurars equals 1 kroná.
History
For the first several hundred years of its existence, Iceland did not require currency. Under the early Viking settlements, money was not of concern. By 1262, the tax of the land was wool. While under Norwegian and Danish rule money did circulate, the country did not have any of its own until late in the 19th century. In 1885 Iceland had its own style of both banknotes and coins. They bore similarity to the Danish krone. In fact, the early money bore the name kronur.
World War I saw the creation of an independent kingdom. In 1922, the first coins minted in Copenhagen made their appearance. Yet the ties to coins overtly displayed Iceland’s ties to Denmark. The earliest bore the monogram of the Danish King, Christian XX. Later, the obverse featured the national coat of arms, the reverse the value and the country’s name. The coinage in the following years included 1, 2, 5 and 10 kronur as well as eyrir in denominations of 2, 5 and 10 and 25 aurir.
During WWII, American and British money circulated as part of the occupation by the troops. In 1944, the country became independent, breaking away to form a republic. The result was new denominations including 5, 10 and 50 kronur. Paper money from the central bank by 1961 came in the denominations of 10, 25, 100, 500, 1000 and 1,000 kronur. This lasted until 1981.
In the 1980s and 1990s, Iceland underwent a revaluation of the monetary system and a new coinage appeared. In 1981, 1 new kronur equaled 100 old kronur. The old eyrir coins began to fall into disuse and eventually disappeared. Smaller coins and banknotes became of little value. Today, those worth less than 100 no longer circulate.
Today, Iceland prefers plastic to coins and bills. They do not use the euro and there are not definite plans for them to become a eurozone in the near future. The coins include 1, 5, 10, 50 and 100 kronur. Banknotes consist of 50, 1,000, and 5,000 kronur. A 2,000 kronur note exists but the Icelanders refer to it as “tourist” money.
Obtaining Icelandic Kronur
You can exchange your own currency for Iceland’s kronur in many places. These include the airport, any bank and the local currency exchanges. It is also always easy to locate bank machines in Iceland.
Protecting Your Currency
Crime is rare in Iceland. You still, however, need to take the usual precautions. Do not leave your valuables in cars or leave yourself accessible to thieves.
Using Your Icelandic Kronur
Warning. Iceland is a country where technology is prevalent. Plastic is every present. You can use them in the indoor market Kolaport or at any of the 2 indoor shopping malls in Reykjavík. Purchases to consider are handmade Icelandic wool sweaters and other fashions, outdoor wear and Nordic and Celtic patterned jewelry.
Travel Tips and Warnings
- Try to stay on the path if trekking. This is a safety issue.
- Weather is a factor.
- Do not drive off path. This can irreparably damage the ecosystem
- Penalties for driving under the influence are substantial both financially and in terms of your license.
- Spend time in Reykjavík, the capital city. Clubbing is popular where the sun does not set in summer. Try the city’s thermal pools and wander the old city center.
- Visit Blue Lagoon and Pingvellir National Park.
- Take a trip to the Westman Islands with its claim to having the Pompeii of the North. This is an archeological site worth visiting. There is also an Aquarium and a Natural History Museum you need to go to.
Overview
Iceland
is a country where the sun never sets in summer and the nights are very
long in winter. It depends upon fishing. It has a strong technology
sector and a presence in fashion and music.
For travel information, see www.icelandtouristboard.com.
Currency Summary
Current currency: kronur (single kroná)
100 aurars equals 1 kroná
Coins: 1, 5, 10, 50 and 100 kronur
Banknotes: 50, 1,000, 2,000 (rare) and 5,000 kronur