About the Icelandic Krona

Country:	Iceland
Currency:	Króna
Alias:	Icelandic króna
ISO 4217 CODE:	ISK/352
Symbol:	IKr

The króna is the national currency of the Republic of Iceland, an island nation located in the North Atlantic. The issuing authority for Iceland’s currency is Sedlabanki Islands, which translates from the Icelandic language as “the Central Bank of Iceland.” For much of its history, Iceland was a territory of Denmark, but achieved its independence in 1918. The name króna means crown, and the currency was derived from Denmark’s currency, the krone. Due to inflationary factors, a revaluation of the Icelandic króna took place in 1980, with 100 “old” krónur becoming worth 1 “new” króna.

Background of the Icelandic Krona

The island nation of Iceland is situated on top of the North Atlantic Ridge, a geologically significant area were two tectonic plates meet, resulting in occasional earthquakes and volcanic activity. This geological activity also gives rise to Iceland’s famous geothermal heated pools.

Irish monks had first arrived on Iceland around 600 AD, but the first settlements of importance on the island date back to around 870 AD. Iceland achieved formal independence from Denmark in 1918, though it was defended by the Danish for several decades after its emancipation. The Republic of Iceland wasn’t formally established until June 17, 1944. Finland and Sweden joined the European Union in 1995, but Iceland has yet to join. While many Icelanders can see the benefit of being part of a larger economic community, national fishing rights are still a major concern

Modern-day Iceland has a population of just 283,300 and is the most sparsely populated country in Europe. Three out of five citizens live in or near the capital of Reykjavik. Retail prices in Iceland are relatively expensive, due to the fact that virtually all consumer goods are imported.

The króna is divided into 100 aurar, but coins are no longer minted in denominations of less than one króna. Denominations for coins are 1kr, 5kr, 10kr, 50kr and 100kr. Denominations for banknotes are 500kr, 1,000kr, 2,000kr and 5,000kr.

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