iceland currency exchange 101

Prepare for Your Iceland Trip, Starting With a Little Currency Info!

FROM KRÓNA TO COINS: UNRAVELING THE MYSTERY OF ICELANDIC CURRENCY

When planning a trip to a new country, one of the first things that you’re going to want to do is research the currency. This should include that country’s specific currency, the currencies that the country accepts, the exchange rate from your currency to theirs, and more. If you’re looking to travel to Iceland and are curious about what the currency situation is like so that you’re prepared when visiting, then this guide is for you! 

The Basics About Icelandic Currency

In 1918, Iceland decided to announce its separation and autonomy from Denmark by creating its own currency- Icelandic Króna. This is the second smallest country to have its own currency, penultimate only to the Seychelles. It is typically represented in the international currency market by the symbols kr or Íkr and is abbreviated as ISK. While the currency used to include coins valued from 5, 10, and 50 aurar (cents), 1 krona, 5 krona, 10 krona, 50 krona, and 100, as of 2003 Iceland no longer accepts any coins denominated in aurar (cents). There are also banknotes valued from 500 kr to 10,000 kr. This means that the following coins and banknotes are accepted when utilizing Króna in Iceland: 

Coins:

1 kr. These were issued in 1981 and are made of cupronickel with an Atlantic cod as the obverse mint mark and a mountain giant on the reverse side. 

5 kr. These were issued in 1981 and are made of cupronickel with two short-beaked common dolphins as the obverse mint mark and land wights on the reverse side. 

10 kr. These were issued in 1984 and are made of cupronickel with four capelin as the obverse mint mark and land wights on the reverse side.

50 kr. These were issued in 1987 and are made of nickel brass with shore crab as the obverse mint mark and land wights on the reverse side.

100 kr. These were issued in 1995 and are made of nickel brass with lumpfish as the obverse mint mark and land wights on the reverse side.

Banknotes:

10 krona. These are navy blue in color with Arngrímur Jónsson the Learned on the front and an Old Icelandic household scene based on Auguste Mayer's drawing on the back. They have been issued since 1981.

50 krona. These are brown in color with Guðbrandur Þorláksson on the front and printers at work in the 16th century on the back. They have been issued since 1981. 

100 krona. These are green in color with Árni Magnússon on the front and monastic scribe on the back. They have been issued since 1981 and again in 1994. 

500 krona. These are red in color with Jón Sigurðsson on the front and Jón at his writing desk on the back. They have been issued since 1981 and again in 1994 and 2005.

1000 krona. These are purple in color with Brynjólfur Sveinsson on the front and the Brynjólfskirkja church (1650–1802) at Skálholt on the back. They have been issued since 1984 and again in 1994 and 2004.

2000 krona. These are brown colored with Jóhannes Kjarval on the front and Kjarval's painting Yearning for Flight and his drawing Woman and Flowers on the back. They have been issued since 1995.

5000 krona. These are green/blue multicolored with Ragnheiður Jónsdóttir on the front and Ragnheiður instructing two girls in embroidery on the back. They have been issued since 1986 and again in 2003.

10000 krona. These are blue colored with Jónas Hallgrímsson, mountains, a floral pattern, and a handwritten poem on the front and A plover, poem, mountains, and a scallop shell on the back. They have been issued since 2013.

This means that the bronze 5 aurar (with a bird depicted on the obverse side and a common skate on the reverse), 10 aurar (with a bull depicted on the obverse side and a squid on the reverse), and 50 aurar (with a dragon depicted on the obverse side and a shrimp on the reverse) that were issued in 1981 are no longer in use.

Your Guide to Exchanging Currency Before Visiting Iceland

Now that you have a good understanding about Icelandic Króna/the country’s main currency, it’s time to discuss when you should exchange your money. Many travelers are unsure: should we exchange our money before our trip, or once we arrive in Iceland? The answer is the same regardless of where you go: if you want to ensure a decent rate, you’re going to want to order foreign currency from your bank in advance. When it comes to this I do also advise shopping around for the best exchange rates before ordering, and looking at any additional transactional/service fees you might be charged! It is also a good idea to order foreign currency beforehand if you are going to need large sums of that currency (or if it is a more obscure currency). 

Currency Exchange Rate in Iceland

The currency exchange rate fluctuates depending on supply and demand. Though it is hard to pinpoint an exact exchange rate, since it’s different depending on the market, $1 is worth approximately 140 IKR and 1 EURO is worth approximately 150 IKR at this time. This means that the Icelandic currency is stronger than the American dollar and the Euro, making it a more expensive place to travel! 

Currencies Iceland Accepts

While the best way to ensure that you’ll always be able to pay for something in Iceland is by using Icelandic Króna, many places will also accept US dollars, Canadian dollars, Euros, Norwegian Kroner, Danish Kroner, and Swedish Krona. Euro/Mastercard and Visa credit and debit cards are also widely used as payment methods. If you find yourself in a pinch and needing to pay with cash, try to see if there is an ATM nearby! You will likely have to pay a small added transactional fee, but you should be able to pull out money in the correct currency wherever you are. 

Be a Savy Spender in Iceland

Whether you’re looking to spend a long layover in the beautiful city of Reykjavik or you’re planning an elaborate trip across Iceland’s stunning coastline, understanding the ins and outs of Icelandic Krona can put you ahead of the game and prepare you for your upcoming trip. To learn more about Iceland, make sure to visit my general Iceland page and skim through my other blogs! From guides about popular tourist destinations to little known facts, maps, and inspirational pictures, you can expect to plan an even more exceptional trip with the help of The Traveling Twin. 

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You Ask & I Answer

Frequently Asked Questions

  • Why are there fish depicted on the Icelandic currency?

    Since fish is one of the main industries in Iceland, it is no surprise that fish are depicted as the mint mark on the obverse side of each coin.

  • What currency do they use in Iceland?

    The official currency of Iceland is the Icelandic Króna (ISK).

  • Can I use credit cards in Iceland?

    Yes, Visa, MasterCard and American Express are widely accepted in Iceland. Some smaller establishments may only accept cash, so it is advised to always have some ISK on hand.

  • Are there any restrictions on bringing foreign currency into Iceland?

    No, you can bring any foreign currency into Iceland as long as it is declared at the customs. However, you cannot bring more than ISK 25,000 in cash into the country without prior approval from the Central Bank of Iceland.

  • Are there any restrictions on taking money out of Iceland?

    No, there are no restrictions on taking money out of Iceland, but you must declare any amounts exceeding ISK 25,000. You may also be subject to a 20% taxation on the amount if it is above ISK 50,000.

  • Are there any additional fees for using foreign currency in Iceland?

    Yes, most banks and exchange offices will charge a fee for converting foreign currency into Icelandic Krona. It is advised to shop around in order to find the best exchange rate.

  • Is tipping customary in Iceland?

    Tipping is not expected in Iceland, but it is appreciated if you have received good service. Most restaurants include a 10-15% service fee on their bills, which should be sufficient.

  • What is the best way to exchange money in Iceland?

    You can usually find good rates at banks and currency exchange offices located in larger cities like Reykjavik and Akureyri. It is also recommended to shop around in order to find the best rates. The airport usually has higher rates, so I advise staying clear of exchanging at any counters there.

  • Are ATMs available in Iceland?

    Yes, there are a number of ATMs located throughout Iceland that accept most major credit cards and debit cards. The fees for withdrawing cash from ATMs can vary depending on the bank and the card used.

  • Should I exchange money before I travel to Iceland?

    It is recommended to exchange some money before you travel, so that you have enough ISK to cover any immediate expenses like transportation and lodging.

  • Where is it better to exchange currency- in Iceland or the USA?

    It is generally recommended to exchange currency in the country you reside in since the exchange rate will likely be better than in Iceland. That being said, it is always wise to shop around for the best rates before exchanging any money.

  • What is the currency exchange rate for Iceland?

    The exchange rate for the Icelandic Króna (ISK) is constantly changing and can be viewed on various financial websites. As of early 2023, the exchange rate for 1 US Dollar is about ISK 140. However, this can vary depending on the bank or currency exchange office you use.

  • What is the exchange rate for switching Icelandic currency to Euros?

    As of early 2023, the exchange rate for 1 Euro is about ISK 150. However, this can vary depending on the bank or currency exchange office you use. It is recommended to shop around in order to find the best rates before exchanging any money.

  • What countries accept Icelandic Króna as payment?

    Icelandic Króna is accepted in Iceland, Greenland, and the Faroe Islands. It is not accepted in any other countries.

  • What currency does Iceland take or accept?

    Iceland accepts Icelandic Króna, US dollars, Canadian dollars, Euros, Norwegian Kroner, Danish Kroner, and Swedish Krona. However, it is recommended to check with your bank or currency exchange office before traveling in order to make sure the currency you bring is accepted.

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