The Icelandic krona was first issued by Landsbanki Íslands in 1876 at a fixed exchange rate against the Danish krone. That worked until the First World War. Since then, the value of the Icelandic krona has fallen; the Icelandic krona is only 1/2000 of the value of the Danish krone compared to the exchange rate in 1921, a hundred years ago. The Central Bank of Iceland was established in 1961 and has the exclusive right to issue and sell legal tender in Iceland. 40 years ago, in 1981, the currency was changed, where two zeros were taken from the króna, 100 old krónur became 1 new króna. 20 years ago, in March 2001, a floating exchange rate policy was adopted where restrictions on the appreciation of the Icelandic króna in foreign exchange trading was lifted. Since then, the value of the króna has been relatively stable. Except in the autumn of 2008, when the value fell by almost half in the financial crisis. The króna has regained its former strength, thanks to increased tourism and a robust aluminium and seafood export market.
The Central Bank of Iceland building (on the right) is located on the north side of Arnarhóll. It now employs 298 people, 155 men and 143 women. Harpa, culture and the conference hall is on the left in the picture.Reykjavík 04/11/2021 17:44 – A7C: FE 2.5 / 40mm G
Photo and text: Páll Stefánsson
