Iceland’s unique currency, the Icelandic króna (ISK), often sparks curiosity among travelers. This guide delves into everything you need to know about Iceland Money, from its history and denominations to practical tips for managing your finances during your Icelandic adventure.
Icelandic Krona Banknotes
A Brief History of the Icelandic Króna
The Icelandic króna’s history is intertwined with the nation’s journey to independence. Before 1885, Iceland, under Danish rule, used the Danish krone. The issuance of Icelandic banknotes in 1885 marked a significant step towards autonomy. In 1918, with Iceland’s independence from Denmark, the króna became the official currency.
Initially, Landssjóður Íslands managed the currency. Later, the Bank of Iceland and Landsbanki Ísland took over issuance, introducing various denominations. A major reformation in 1981 addressed hyperinflation, revaluing the króna and changing the currency code from ISJ to ISK. Today, Seðlabanki Íslands (Central Bank of Iceland) oversees the issuance, with banknotes printed by De La Rue in England.
Icelandic Króna: Coins and Banknotes
While Iceland is a largely cashless society relying heavily on debit and credit cards, the króna exists in both coin and banknote forms:
Coins:
- 1 króna (silver)
- 5 króna (silver)
- 10 króna (silver)
- 50 króna (gold)
- 100 króna (gold)
Banknotes:
- 500 króna
- 1000 króna
- 2000 króna
- 5000 króna
- 10,000 króna
Notable Figures on Icelandic Banknotes
Each Icelandic banknote features a prominent figure from Iceland’s history and culture:
- 500 króna: Jón Sigurðsson, leader of Iceland’s independence movement.
Icelandic krona
- 1000 króna: Brynjólfur Sveinsson, a Lutheran Bishop known for preserving Norse mythology.
1000 ISK banknote featuring Brynjólfur Sveinsson
- 2000 króna: Jóhannes Kjarval, a beloved Icelandic painter.
2000 ISK banknote featuring Jóhannes Kjarval
- 5000 króna: Ragnheiður Jónsdóttir, a talented seamstress and the only woman featured on an Icelandic banknote.
5000 ISK banknote featuring Ragnheiður Jónsdóttir
- 10,000 króna: Jónas Hallgrímsson, a renowned Icelandic poet.
10,000 ISK banknote featuring Jónas Hallgrímsson
Understanding the Value of Iceland Money
The exchange rate for the Icelandic króna fluctuates. It’s advisable to use a currency converter for up-to-date information. As of writing this, 1 USD is approximately equal to 127 ISK.
Reykjavik city street view with church
Practical Tips for Managing Your Money in Iceland
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Embrace Cashless Transactions: Credit and debit cards are widely accepted.
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Carry Some Cash: Small businesses, campgrounds, and tipping may require cash.
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Budget Wisely: Iceland is an expensive country. Plan your spending accordingly.
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Leverage Tax-Free Shopping: Tourists can reclaim VAT on purchases over 6000 ISK (excluding food and drinks).
women buying souvenirs in Iceland
The Icelandic króna, a symbol of Iceland’s sovereignty and rich cultural heritage, plays a vital role in the nation’s economy. Understanding its history, denominations, and practical usage will enhance your experience navigating Iceland’s financial landscape.
