What currency does Iceland use?
The official currency of Iceland is the Icelandic króna, denoted as Íslensk króna in the Icelandic language. The term "króna" translates to "crown" in English. In singular form, the Icelandic word is "króna," while in plural, it becomes "krónur." Coin denominations include 1 króna, 5, 10, 50, and 100 krónur, while banknotes are available in 500, 1000, 2000, 5000, and 10000 krónur denominations.
Currency in Iceland: name, code, symbol
- Name: Icelandic króna
- Code: ISK (International Currency Code)
- Symbol: kr. (used before or after the price to denote króna
Currency of Iceland: history
The issuance of banknotes in Iceland began in 1885, marking a significant transition from the use of the Danish Krone. At that time, Iceland was under Danish Royal rule, and the introduction of their own banknotes represented a notable step towards eventual independence.
In 1918, Iceland achieved autonomy from Denmark, leading to the adoption of the Icelandic Króna as the official currency. The initial banknotes, including denominations of 5, 10, and 50 króna, were later transformed into coins. The issuance transitioned from Landssjóður Íslands to the Bank of Iceland in 1904, which introduced the first 100 króna bill. The state, Ríkissjóður Íslands, took over and introduced the 1 króna note. Landsbanki Ísland assumed control in 1928, overseeing denominations of 5 króna and above. In 1935, Landsbanki Íslands introduced 500 króna notes, followed by the 25 and 1000 króna almost two decades later.
The first Icelandic coins, 10 and 25 aurar, appeared in 1922, followed by the establishment of 1 and 2 króna pieces three years later. The 1 króna coin remains in circulation today. In 1946, these coins underwent a redesign, eliminating the Royal Monogram, coinciding with Iceland's independence in 1944.
In 1967, additional coins were introduced, responding to a significant devaluation of the króna. The 10 króna was the first, followed by the 50 aurar, 5 króna, and 50 króna.
Hyperinflation in 1981 prompted a complete reformation and revaluation of the Icelandic Króna. The currency underwent a 100-fold increase, and new banknotes and coins were introduced, with the currency code changing from ISJ to ISK.
In the reformation, the 500 ISK banknote was introduced with a design that remains similar today. Over the next five years, the 1000 ISK and 5000 ISK banknotes were added, featuring designs still in use. The latest addition was the 10,000 ISK banknote in 2013.
Currently, Seðlabanki Íslands, Iceland’s Central Bank, manages the issuance of money, while printing is carried out by De La Rue in England.
In 1918, Iceland achieved autonomy from Denmark, leading to the adoption of the Icelandic Króna as the official currency. The initial banknotes, including denominations of 5, 10, and 50 króna, were later transformed into coins. The issuance transitioned from Landssjóður Íslands to the Bank of Iceland in 1904, which introduced the first 100 króna bill. The state, Ríkissjóður Íslands, took over and introduced the 1 króna note. Landsbanki Ísland assumed control in 1928, overseeing denominations of 5 króna and above. In 1935, Landsbanki Íslands introduced 500 króna notes, followed by the 25 and 1000 króna almost two decades later.
The first Icelandic coins, 10 and 25 aurar, appeared in 1922, followed by the establishment of 1 and 2 króna pieces three years later. The 1 króna coin remains in circulation today. In 1946, these coins underwent a redesign, eliminating the Royal Monogram, coinciding with Iceland's independence in 1944.
In 1967, additional coins were introduced, responding to a significant devaluation of the króna. The 10 króna was the first, followed by the 50 aurar, 5 króna, and 50 króna.
Hyperinflation in 1981 prompted a complete reformation and revaluation of the Icelandic Króna. The currency underwent a 100-fold increase, and new banknotes and coins were introduced, with the currency code changing from ISJ to ISK.
In the reformation, the 500 ISK banknote was introduced with a design that remains similar today. Over the next five years, the 1000 ISK and 5000 ISK banknotes were added, featuring designs still in use. The latest addition was the 10,000 ISK banknote in 2013.
Currently, Seðlabanki Íslands, Iceland’s Central Bank, manages the issuance of money, while printing is carried out by De La Rue in England.
Does Iceland use the Euro?
No, Iceland does not use the Euro as its official currency. The country has not adopted the Euro and has maintained its independent currency. When visiting Iceland, transactions are conducted in Icelandic króna, and you will not use the Euro for everyday purchases or financial transactions.
Can foreign currency be use in Iceland?
Icelandic businesses are not obliged to accept any currency other than the Icelandic króna. While establishments frequently visited by tourists, such as restaurants, bars, hotels, and tours, might be more inclined to accept foreign currencies, it is unwise to rely on this, and the default expectation is payment in ISK.
If the option to pay in a foreign currency is available, it's essential to be aware that this convenience may come with a cost, often resulting in an unfavorable exchange rate. The recommended practice is to use Icelandic króna for transactions or, when possible, rely on credit or debit cards.
If the option to pay in a foreign currency is available, it's essential to be aware that this convenience may come with a cost, often resulting in an unfavorable exchange rate. The recommended practice is to use Icelandic króna for transactions or, when possible, rely on credit or debit cards.
