The state of Iceland is located in the west of Northern Europe. The country covers 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 Reykjavik. In this country, the local currency is the official currency. According to the international standard, the currency of Iceland has an ISK designation and a code for conversion of 352. By the way, it will be worth mentioning that the national currency of Iceland is rightfully considered one of the most attractive among the existing world currencies.
History of the emergence of the national currency in Iceland
The process of settling the island with people and the beginning of the formation of statehood of a new formation originates in the 9th century. Then the Norwegian king Harald forced many residents to leave his possessions in search of a better life and fate. As an official monetary unit, the Icelandic krone appeared in circulation in 1885. The currency of Iceland consists of one hundred air. It will be useful to say that since the beginning of 1995, this bargaining chip stopped its circulation and is no longer used in cash circulation. Four years later, a law came into force that called for the rounding of all amounts when calculating to fifty air. And already in 2003, the cancellation of dividing one Icelandic krone into smaller shares was fixed at the legislative level. Thus, at the moment the smallest coin in Iceland is one crown.
Metal crowns appeared in circulation in 1925, and for 20 years they depicted the monogram of Christian X. In 1944, Iceland became a republic and the use of royal symbols when minting coins was discontinued. Paper notes of the Icelandic krone first saw the light in 1885. Initially, banknotes of three denominations were issued: five, ten and fifty kroons. In 1961, the Central Bank of Iceland was established. Up to this point, banknotes were made 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
To date, banknotes of various denominations are decorated in a variety of colors. Banknotes in denominations of ten, fifty and one hundred kroons are no longer printed, but banknotes of 5 thousand and 10 thousand appeared, examples of which are given below. To this day in circulation is such a currency of Iceland as coins in denominations of one, five, ten, fifty and one hundred kroons.
Icelandic krona 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, the promotion of biotechnology and information innovations. In addition, the banking sector was very well developed in Iceland. Back in 2001, the fishing industry accounted for 32% of the country's industry, but in subsequent years the state took a course towards moving away from the monocultural type of management. Social policy of the state also stood out in comparison with many other European countries. But the global financial crisis, caused by mortgage lending in the United States, has severely affected the Icelandic economy. The currency of Iceland 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 strongly. The currency and the national currency exchange rate also turned out to be dependent on the inflow of investments into the economy, which sharply declined. The state was on the verge of complete bankruptcy, and the unemployment rate increased significantly and amounted to almost 10%.
Currency outlook
In 2009, the Icelandic Cabinet of Ministers considered three possible options for the future of the Icelandic krona. One of them was the preservation of the national currency. In addition, options for switching to the euro with accession to the European Union and joining the eurozone without EU membership were discussed. The Ministry of International Relations of Iceland preferred the second option. This position led to the start of negotiations on accession to the EU. Nevertheless, at the moment, the Icelandic krone remains the only official currency in the state of Iceland. The currency, the exchange rate against the ruble and other monetary units are quite stable. Today, such quotes are valid: 1 ISK = 0.0087 USD, 1 ISK = 0.0078 EUR. The currency of Iceland to the ruble has a ratio of 1 ISK = 0.55 RUB.