Iceland is a country of extreme geological contradictions. The country is popularly referred to as "The Land of Fire and Ice." Iceland is a country home to several of the most active volcanoes globally and a number of the largest glaciers in Europe. The Iceland Krona (ISK) is the currency of Iceland. Iceland is the second smallest country, ranked by population, to have its own currency and monetary policy. The krona is divided into 100 aurar. The currency is usually presented with the "kr" symbol. The Iceland Krona has received the nickname "Icelandic Crown" in the financial markets because the word "krona" is associated with the Latin word corona, which means crown.
In 1922, the Iceland Krona was first seen in its coin form and then succeeded by notes in 1929. In 1981, the Icelandic currency was revaluated, and just the whole kronur has been used since 2002. Currency trading in Iceland was halted during the 2008 Icelandic banking collapse. The country is not a member of the European Union and does not use the Euro. The Central Bank of Iceland manages the country's Krona. The value of the Krona can change rapidly against the U.S. dollar and other currencies.
The Krona was revaluated in 1981, and since 2002, only the whole kronur has been used. Then, in 2008, currency trading was suspended when Icelandic banking collapsed. Iceland is not a member of the European Union and does not use the Euro, and the Central Bank of Iceland manages its currency. The value of the Krona can change swiftly against the U.S. dollar and other currencies.
Besides its abundant geothermal and hydroelectric power, the nation lacks natural resources. Historically, Iceland depended massively on fishing, which still employs 7% of the workforce and generates 40% of export earnings despite declining fish stocks. In the 1990s, Iceland introduced extensive free-market reforms, achieved some of the world's highest ratings for civil and economic freedoms and egalitarianism, and was praised for its rapidly expanding financial system and strong economic growth. By 2007, the country ranked fifth in GDP purchasing power parity ($ 40,112); and seventh in the world's most productive countries per capita, at the U.S. $ 54,858. That same year it topped the list of nations ranked by the Human Development Index (HDI).