Icelandic Króna Appreciates by 20 Percent Skip to content

Icelandic Króna Appreciates by 20 Percent

The Icelandic króna appreciated by almost 20 percent in two days since it was floated on Thursday. On Friday it appreciated by more than 11 percent, which is a record increase in one day since the króna was first floated in 2001.

Copyright: Icelandic Photo Agency.

The eight percent appreciation the day before was also a record.

EUR 1 currently costs around ISK 153, USD 1 costs ISK 121 and DKK 1 almost ISK 21, Morgunbladid reports.

Many had predicted that the króna would depreciate after being re-floated. However, foreign currency held by exporters seems to be flowing into the country to a greater extent than foreign currency is flowing out of the country.

The currency restrictions are also believed to be a factor in the appreciation of the króna.

Click here to read more about the floating of the króna.

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