Gjaldmiðilsins

Gjaldmiðilsins is a term that translates to "currency" in Icelandic. It refers to any form of money that is issued by a government or other authority and is accepted as a medium of exchange in a country or region. In Iceland, the official currency is the Icelandic króna (ISK). The króna is subdivided into 100 aurar, although aurar are not commonly used in everyday transactions.

The Icelandic króna was introduced in 1918, replacing the Danish krone, which had been used in Iceland since 1874. The króna is managed by the Central Bank of Iceland, which is responsible for maintaining the stability of the currency and implementing monetary policy. The Central Bank of Iceland also issues banknotes and coins in denominations of 100, 200, 500, 1000, 2000, 5000, and 10000 krónur, as well as 1, 5, 10, and 50 aurar.

The Icelandic króna is pegged to the euro, with a fixed exchange rate of 125 ISK per EUR. This pegging allows Iceland to avoid the costs and complexities of managing its own exchange rate and has helped to stabilize the economy. However, the pegging has also led to some economic challenges, such as high inflation and a large current account deficit.

In addition to the Icelandic króna, other forms of currency are also used in Iceland, including foreign currencies and cryptocurrencies. However, the Icelandic króna remains the primary medium of exchange in the country.