Icelandic Króna Finally Drops In Value - The Reykjavik Grapevine

Icelandic Króna Finally Drops In Value

Published June 22, 2017

Elías Þórsson
Photos by
Art Bicnick

Yesterday, the Icelandic króna depreciated 1.8% and since the beginning of June it has fallen by 5.2%, reports RÚV.

The strong króna has been causing tourists headaches, with already expensive Iceland getting more and more unforgiving. Over the last 12 months the króna has appreciated 23%, and by 7.7% since the beginning of 2017. Therefore, we are sure you’ll rejoice these new of this value drop.

Last March brought about the virtual end of the capital controls, which have been in place since the 2008 financial crash. This has allowed currency to flow more readily out of the economy. Despite this, Daníel Svavarsson, an economist from Landsbankanum, believes the that krónan has not hit its peak and will continue to increase in value in the foreseeable future.

“It’s hard to fully analyse the short term fluctuations, but long term I seriously doubt that we’ve seen the high point, Daníel told RÚV.

Currently the US Dollar costs around 100 króna and the euro 110.

Tourists, please don’t go

Icelanders have a complicated relationship with tourists. You are sort of in the way, but we also need you so we can keep the puffin shop and viking hat industries going. So we understand that you might be hesitant to come visit one of the most expensive countries in the world and be forced to Airbnb the back of a shady van, sleep illegally in your RVs, or take naps in Harpa.

Plus, if the country gets too expensive, you can always just bring canned beans and sandwiches with you.

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