Iceland Currency Guide 2024: What You Need to Know

Iceland's currency is the Icelandic króna (ISK), and it's essential to understand how it works before your trip.

The króna is divided into 100 aurar, but you won't need to worry about aurar for everyday transactions.

You can exchange your money for króna at a bank or currency exchange office, but credit cards are widely accepted in Iceland.

Make sure to inform your bank of your travel plans, so they don't flag your transactions as suspicious.

Iceland's currency has a rich history, and it's interesting to note that the country still uses its own currency, the Icelandic króna (ISK), even though it's a part of the EU. The króna was introduced in 1918 after Iceland gained independence from Denmark.

The króna replaced the Danish krone, which was introduced to Iceland in 1874, and Iceland began issuing its own banknotes in 1885. The first coins were issued in 1922.

In 1922, Iceland had to devalue the króna by 23% against the Danish króna, marking the beginning of an independent monetary policy. This was the first of many subsequent devaluations of the króna.

The króna was pegged to the British pound from 1925 to 1939, and then to the US dollar until 1949.

The Icelandic krona is the official currency of Iceland, and it's available in both notes and coins. The main denominations for notes are 500 ISK, 1000 ISK, 2000 ISK, and 5000 ISK.

If you're planning to visit Iceland, it's worth knowing that coins come in smaller denominations, including 1 ISK, 5 ISK, 10 ISK, 50 ISK, and 100 ISK.

The Icelandic krona has undergone changes over the years, with new coins being introduced in 1967 to account for a significant fall in the value of the krona.

The Second Krona, introduced in 1981, is a unique feature of the Swedish currency. It's a type of krona that's been in circulation since the 80s.

The Second Krona is a result of Sweden's decision to decimalize its currency in 1981. This change affected the value of the krona.

The Second Krona is divided into 100 öre, just like the original krona. However, the öre is now a subunit of the Second Krona rather than a separate currency.

You can still find Second Krona coins and banknotes in circulation today.

The Icelandic krona comes in a variety of denominations, both in notes and coins.

The main denominations for notes are 500 ISK, 1000 ISK, 2000 ISK, and 5000 ISK.

You can also find coins in denominations of 1 ISK, 5 ISK, 10 ISK, 50 ISK, and 100 ISK.

These denominations are available to help you navigate everyday transactions in Iceland.

Here are the note and coin denominations in a concise list:

The Icelandic krona, or ISK, is the official currency of Iceland. It's been around since 1874, after Iceland gained independence from Denmark.

The krona is a relatively weak currency, having been devalued several times over the years. Despite this, Iceland is not a particularly cheap travel destination.

You can exchange your currency for Icelandic krona at a bank counter, such as Arion banki, for a more favorable exchange rate.

The largest denomination banknote is the 10,000 krona note, which is equivalent to around $72.25 USD or €66.89 as of August 2024.

Here are the main denominations of Icelandic krona banknotes:

Coins are also available in various denominations, including 1, 5, 10, 50, and 100 ISK.

Most places in Iceland accept electronic payments, such as debit or credit cards, and online bank transfers. This is because Iceland has a high per capita computer usage, making technology a big part of the monetary system.

The Icelandic krona is the official currency of Iceland, and it's used throughout the country. You can use it to pay for goods and services, but you'll find that many places accept credit or debit cards as well.

In fact, most shops in Iceland accept electronic payment, making it easy to get by without cash. However, it's still a good idea to have some krona on hand for small transactions, like taxi fares or tips.

If you're planning to use your credit or debit card, be aware that there may be exchange fees and transaction costs involved. It's a good idea to check with your bank beforehand to understand what these costs will be.

Some businesses, like large hotel chains and stores, may accept foreign currencies like the US dollar or euro, but it's not a guarantee, and exchange rates may not be great. It's best to use either a credit card or Icelandic króna for your transactions.

To give you an idea of the denominations of krona notes and coins, here's a quick rundown:

Keep in mind that the largest denomination banknote, the 10,000 krona note, has a relatively low value, so most high-value trades are done in electronic transfers and in other currencies.

The currency in Iceland is Icelandic krona (ISK), and as of September 18, 2024, 1 US$ is equivalent to 137.22 Icelandic kronur.

You can exchange your money for Icelandic krona at banks and local exchange centers, or withdraw it from ATMs throughout the country.

The Central Bank of Iceland sets the daily exchange rate, which you can check on their website. You can also find approximate prices for common items in Icelandic krona on various websites.

Some businesses in Iceland, especially large hotel chains and stores, may accept US dollars, euros, or pounds, but it's not guaranteed.

It's generally recommended to use Icelandic krona for the easiest transactions, especially outside of urban areas.

Here's a list of some common prices in Icelandic krona for reference:

Keep in mind that American Express is not widely accepted in Iceland, so it's best to have a Visa or Mastercard as backup.

As of September 18, 2024, 1 US dollar is worth 137.22 Icelandic kronur.

You can exchange currency at banks and local exchange centers in Iceland, or withdraw Icelandic króna from ATMs throughout the country.

For convenience purposes, it's a good idea to have a small amount of Icelandic króna, around 10,000 ISK (about $70), when traveling outside the capital of Reykjavik.

Many Icelandic credit card machines will only accept chip cards instead of swipe cards.

It's also worth noting that American Express is not widely accepted in Iceland, so it's a good idea to have a Visa or Mastercard as backup.

If you need to check the exact currency rate, you can visit the Central Bank of Iceland's website, which has information on the current currency rate in English.

You can find the official exchange rate on their website at https://www.cb.is/statistics/official-exchange-rate/.

Here's a rough guide to approximate prices in Icelandic króna:

Iceland has its own currency, the Icelandic króna, which is not part of the European Union's monetary system.

Having its own central bank and currency gives Iceland the freedom to devalue its currency to become more competitive in the global market.

This uniqueness also brings volatility to the Icelandic foreign exchange market, making it one of the most volatile in Europe.

Investors and arbitrageurs can capitalize on these characteristics, particularly through bonds or bets against the local currency.

Iceland's ability to devalue its currency creates opportunities for those who can take advantage of it.

You can use credit or debit cards almost anywhere in Iceland, making it unnecessary to withdraw cash in most situations.

Having a small amount of Icelandic króna, around 10,000 ISK (about $70), is a good idea if you're traveling outside the capital of Reykjavik as there might be small things you'll need cash or coins for.

American Express is not widely accepted in Iceland, so it's a good idea to have another Visa or Mastercard as backup.

If you do need to withdraw cash, you can use ATMs, which are widely available in major cities. The Icelandic name for an ATM machine is Hraðbanki, although you can also search for "ATM near me" on Google.

ATMs in Iceland include multiple interface languages, including English, making it simple for anyone to withdraw money.