krónuna

The króna, in its definite Icelandic form krónuna, is the national currency of Iceland. The ISO code is ISK and the symbol is kr. The krona is issued by Seðlabanki Íslands (the Central Bank of Iceland) and is subdivided into 100 aurar. In everyday use, prices are quoted in krónur and cash remains a common means of payment for goods and services within Iceland.

The krona derives from the Danish krona and has served as Iceland’s currency since the era of monetary autonomy from Denmark. Today, the króna operates as a fiat currency with a floating exchange rate determined by the foreign exchange market; it is traded domestically and internationally and used for trade, tourism, and financial transactions.

Banknotes and coins are issued by the central bank in multiple denominations. Banknotes typically feature Icelandic landscapes, cultural symbols, and notable figures, while coins carry national motifs and security features. Designs and denominations have been updated periodically to improve durability and anti-counterfeiting.

Monetary policy and history: Iceland’s monetary policy aims at price stability and financial stability, employing interest rate adjustments and other instruments. The krona experienced a sharp decline during the 2008 financial crisis, and capital controls were imposed for several years before being lifted gradually in the following years. Since then, the currency has remained volatile and is influenced by domestic economic performance, inflation, tourism, and global financial conditions.