Central Bank Rules Out Renaming Icelandic Currency - The Reykjavik Grapevine

Central Bank Rules Out Renaming Icelandic Currency

Published March 17, 2011

Recent discussion in parliament over changing the name of Iceland’s currency has not gone unnoticed by the Central Bank, but the idea was not exactly welcomed warmly.
RÚV reports that Central Bank chairman Már Guðmundsson held a press conference yesterday to announce that they intend to hold interest steady at 4.25% for the time being. Reporters on hand were quick to ask what the chairman’s opinion was of the idea of changing the name of the crown.
Earlier this week, Leftist-Green MP Lilja Mósesdóttir had introduced the idea of changing the name of Iceland’s currency, pointing out that the crown has lost a great deal of credibility since the banking collapse. The reaction, both within parliament and the general public, has been mixed, with some seeing the value in this point, while others dismissing it as mere window dressing.
Már told reporters that the possibility of changing the name of the crown has not been considered, as he does not believe it would make much of a difference. Confidence in the currency, he said, comes from economic policy, the state of the economy itself, and the institutional framework; not the name the money bears.
A recent poll shows that Icelanders are gradually warming up to the idea of joining the European Union, primarily for economic reasons. Some 66% of Icelanders polled believe that adopting the euro would be good for the economy.

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