Another Black Day for the Icelandic Króna Skip to content

Another Black Day for the Icelandic Króna

The ISK depreciated by 3.1 percent yesterday with the exchange rate index closing at 180 points, for the first time in the currency’s history.

The most pessimistic forecasts from last spring on the development of the króna have come true, said Ólafur Ísleifsson, a lecturer at Reykjavík University.

According to Fréttabladid, the depreciation of the ISK can be traced back to the uncertainty surrounding the issuing of so-called glacier bonds, bonds that are denominated in ISK.

The research department of Kaupthing Bank stated that while that uncertainty remains, the ISK will continue to depreciate.

Eiríkur Gudnason, a member of the board of directors at the Central Bank of Iceland, said that the bank does not have information on what is causing the disturbances surrounding the ISK.

Managing Director of the Confederation of Icelandic Employers (SA) said Icelanders are paying for the uncertainty in the United States.

USD 1 is currently ISK 95.04, EUR 1 is currently ISK 139.61, GBP 1 is currently ISK 176.66 and DKK 1 is currently ISK 18.72.

Click here to read more about the development of the ISK.

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