Icelandic Krona

The Icelandic krone was first issued by Landsbanki Íslands in 1876 at a fixed exchange rate against the Danish krone. This state lasted until World War I, but the value of the Icelandic krone has declined since then. According to the exchange rate of one hundred years ago, in 1921, it was only 1/2000 of the value of the Danish krone.

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The Central Bank of Iceland Seðlabanki Íslands was founded in 1961 and has the exclusive right to issue and sell legal tender in Iceland.

40 years ago, in 1981, the currency was denominated, the krone was subtracted two zeros, with the result that 100 old kroner became 1 new krona. On the other hand, 20 years ago, in March 2001, a floating exchange rate policy was adopted, under which the appreciation of the Icelandic koruna took place freely in foreign exchange.

Since then, the value of the koruna has remained fairly stable, with the exception of autumn 2008 when it fell by almost half as a result of the banking crisis. The crown has now regained its former strength thanks to an increase in the number of tourists and strong exports of aluminum and marine products.

Icelandic Krona
Iceland’s Central Bank building (right) is located north of Arnarhóll. It currently employs 298 people, 155 men and 143 women

Source: Yle


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