Iceland Krona Currency

Overview

Iceland is in the North Atlantic Ocean is a European island country. Iceland is geologically and volcanically active. Reykjavik is the largest city and the capital having the surrounding areas accounting to two-thirds of the population. Glaciers, mountains and fields are the interiors and enjoy a temperate climate.

Iceland has low taxes with a free market economy and provides universal health care. Iceland in 2007 ranked to be the most developed country by the United Nations Human Development index and also was the 4th productive country per capita.

The banking system in 2008 failed systematically and led to economic contraction as well as political unrest.

Currency

Iceland Krona has the code ISK and the plural is Kronur. The sign is kr and the Iceland Krona is subdivided into 100 aurar, but this subdivision is not in use any more. The word Krona means ‘crown’ is also related to others such as Swedish Krona, Danish Krone and Norwegian krone.

The financial markets sometimes use the name ‘Icelandic crown’.

In 1874, the Danish Krone was introduced and replacing it was the rigsdaler, the Danish currency and in 1885 Iceland issued its own banknotes.

The Icelandic krona was separated after the Scandinavian Monetary Union dissolution at the World War I initiation. In 1922 early coins were issued.

Coins

The first coins were introduced in 1922 in Iceland were 10 and 25 eyrir. In 1925 this was followed by denominations 1 and 2 krona pieces, while in 1926 1, 2 and 5 eyrir pieces also emerged. In 1946, the designs on the coins were changed such that the royal monogram was removed. In 1967, new coins were introduced owing to a great fall in the krona value.

To be precise, 10 krona coins came as introduction and was follwed by 5 krona and 50 eyrir pieces in 1969 and in 1970 50 krona pieces were introduced.

Banknotes

In 1885 the first notes were introduced in denominations of 5, 10 and 50 krónur. The Bank of Iceland introduced 100 króna notes in 1904. Denomination of 5 kronur was taken by another bank in 1929, the Landsbanki Islands, while 1 krona notes were continued by Rikissjod Islands until 1947. in 1935, Landsbanki Islands also came with 500 krona notes and later in 1957 with 25 and 1000 krona notes.

The Seolabanki Islands in 1961issued paper money in denominations such as 10,25,100,500,1000 and 5000 kronur. Aurar is in use to price certain share in the Iceland stock exchange.