The currency of Iceland. The history of the appearance of the monetary unit. Rate

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The state of Iceland is located in the west of Northern Europe. The country occupies the entire territory of the island of the same name in the waters of the Atlantic Ocean, as well as small adjacent islands. The capital of the state is the city of Reykjavik. In this country, the official currency is the local krone. According to the international standard, the Icelandic currency has the designation ISK and the conversion code 352. It would be nice to say that the national currency of Iceland is rightfully considered one of the most attractive among the existing world currencies.

The history of the national currency in Iceland

The process of settling the island with people and the beginning of the formation of the statehood of a new formation originates in the 9th century. Then the Norwegian king Harald forced many inhabitants to leave his possessions in search of a better life and destiny. The Icelandic krone became the official currency in 1885. The Icelandic currency is divided into 100 Eire. It would be opportune to say that since the beginning of 1995, this small change has ceased to circulate and is no longer used in cash circulation. Four years later, a law began to operate, which assumed that all amounts were rounded up to fifty aire in calculations. And already in 2003 onAt the legislative level, the abolition of the division of one Icelandic krona into smaller shares was fixed. Thus, at the moment, the smallest coin in Iceland is one crown.

Metal crowns appeared in circulation in 1925, and for 20 years they were marked with the image of Christian X's monogram. In 1944, Iceland became a republic and the use of royal symbols in coinage was discontinued. Paper banknotes of the Icelandic krone were first issued in 1885. Initially, banknotes of three denominations were issued into circulation: five, ten and fifty crowns. In 1961, the Central Bank of Iceland was created. Up to this point, banknotes were produced first by a private bank, and then by the State National Bank. The last institution had this exclusive right since 1927.

Modern coins and banknotes of Iceland

Today, banknotes of different denominations are decorated in a variety of colors. Banknotes in denominations of ten, fifty and one hundred crowns are no longer printed, but banknotes of 5 thousand and 10 thousand appeared, examples of which are given below. In circulation to this day there is such a currency of Iceland as coins in denominations of one, five, ten, fifty and one hundred crowns.

Iceian krone exchange rate today

Until 2008, Iceland was at the forefront of the most developed countries in the world. The economy of this state was based on construction, tourism, promotionbiotechnologies and information innovations. In addition, the banking sector was very well developed in Iceland. Back in 2001, the fishing industry occupied 32% of the country's industry, but in subsequent years, the state took a course towards moving away from a monocultural type of management. The social policy of the state also stood out in comparison with many other European countries. But the global financial crisis, triggered by US mortgage problems, has hit the Icelandic economy hard. The Icelandic currency also suffered, as evidenced by its devaluation by almost 60%. At the same time, stock markets and the banking sector of the state of Iceland sank heavily. The currency, the exchange rate of the national currency also turned out to be dependent on the inflow of investments into the economy, which fell sharply. The state was on the verge of complete bankruptcy, and the unemployment rate rose significantly and amounted to almost 10%.

Currency Outlook

In 2009, the Icelandic Cabinet considered three possible options for the future of the Icelandic krone. One of them was the preservation of the national currency. In addition, options for switching to the euro with entry into the European Union and accession to the eurozone without membership in the EU were discussed. The Icelandic Ministry of Foreign Affairs favored the second option. This position led to the start of negotiations on accession to the EU. Nevertheless, at the moment, the Icelandic krone still remains the only official currency in the state of Iceland. Currency, exchange rate against the ruble and other monetary units is enoughstable. To date, the following quotes are valid: 1 ISK=0.0087 USD, 1 ISK=0.0078 EUR. The Icelandic currency to the ruble has a ratio of 1 ISK=0.55 RUB.