Currency of Iceland. The history of the appearance of a monetary unit. Rate

The state of Iceland is 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 islets. The capital of the state is the city of Reykjavik. In this country the official currency is the local kroon. According to the international standard, the currency of Iceland has the designation ISK and the code for the conversion of 352. It will be by the way 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 formation of the national currency in Iceland

The process of settling the island by people and the beginning of the formation of the statehood of the new formation dates back to the IX century. Then the Norwegian King Harald forced many residents to leave his domain in search of a better life and destiny. As an official currency Icelandic krone appeared in circulation in 1885. The currency of Iceland consists of one hundred euros. It will be by the way to say that since the beginning of 1995, this bargaining chip has stopped its circulation and is no longer used in cash circulation. Four years later, the law began to act, implying the rounding of all amounts in calculations to fifty ayr. And already in 2003, at the legislative level, the cancellation of the division of one Icelandic koruna 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 painted with the monogram of Christian X. In 1944 Iceland became a republic and the use of monarchic symbols during the coinage was stopped. Paper denominations Icelandic krona first saw the light in 1885. Initially, banknotes of three advantages 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. This exclusive right has been granted to this institution since 1927.

Modern coins and banknotes of Iceland

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

Icelandic krone rate today

Until 2008, Iceland was in the forefront of the most developed countries in the world. The economy of this state was based on construction, tourism, promotion of biotechnology and information innovations. In addition, the banking sector in Iceland was very well developed. Back in 2001, the fishing industry occupied 32% of the country's industry, but in the following years the state took a course toward avoiding 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 the problems of mortgage lending in the US, greatly affected the Icelandic economy. The currency of Iceland also suffered, as evidenced by its devaluation by almost 60%. At the same time, the stock markets and the banking sector of the state of Iceland have strongly subsided. The currency, the rate of the national currency, also turned out to be dependent on the inflow of investments into the economy, which sharply decreased. The state was on the verge of total bankruptcy, and the unemployment rate grew significantly and amounted to almost 10%.

Currency Perspectives

In 2009, the Cabinet of Ministers of Iceland considered three possible options for the future Icelandic krone. One of them was the preservation of the national currency. In addition, options for moving to the euro with accession to the European Union and joining the euro area without EU membership were discussed. The Ministry of International Relations of Iceland preferred the second option. This position led to the beginning of negotiations on accession to the EU. Nevertheless, at the moment the Icelandic krona still remains the only official currency in the state of Iceland. Currency, exchange rate to the ruble and other monetary units are quite stable. To date, these quotes are valid: 1 ISK = 0.0087 USD, 1 ISK = 0.0078 EUR. The currency of Iceland to the ruble is related to 1 ISK = 0.55 RUB.