The Icelandic krona continued its downward slide yesterday, hitting 220.2 points in the weighted average of foreign currency index. The currency closed on Monday at 212 points. The currency weakened by 3.72 percent yesterday and 4.63 percent so far this week.
At the close of trading yesterday, the euro cost 168 kronur, the British pound 187, the American dollar 127, the Swiss franc at 111 and the Japanese yen was trading at 1.26 kronur. The yen strengthened by 4 percent yesterday and the Swiss franc by 3 percent, RUV.is reports.
The current downward slump in the currency is a serious setback, as stability of the krona and reduced inflation are the top priorities set by the IMF and the Central Bank.
The current rates are still significantly better than the historic lows in early December when the British pound, for example, cost 220 kronur for a time.
At least the krona should become more stable as its value lowers.
When leaders try to camouflage Dionysus as Apollo, all hell breaks loose.
Everything is broken up and dances.
will the i.sk get stronger soon and if so is it possible that the eschangerate i.sk/eur could go back like the 1st of january 2008 at the rate of about 100?
could you give your expertation about the development of the kronur?
The truth of the matter is that the icelandic banks are still running corrupt tactics/schemes with it’s currency. I was there for a week late March and the banks were ripping off foreiners. I could clearly see that the icelandic banks were giving me about 7 krona less for my dollar than what it was actually traiding for in the world, we are not dumb everyone has internet access. They need to start running an honest business if they ever want to get out of the mess they are still in. I’m not going back there until they fix it.
“The current rates are still significantly better than the historic lows in early December when the British pound, for example, cost 220 kronur for a time.”
EXACTLY AND THEN WAS WHEN THE ICB SET THE ARTIFICIAL VALUE FOR THE ISK THAT IS ONLY A FAKE RATE FOR THE MONOPOLY MONEY WE HAVE IN ICELAND NOW… NO ONE REALLY KNOWS WHAT TE REAL VALUE OF THE KRONA IS, IF IT HAS SOME VALUE AT ALL.
THE REAL DOWN WE SAW WAS WHEN THE KRÓNA WENT OVER 300 ISK PER EURO!! AT THE ECB. SINCE THEN THE ICELANDIC KRÓNA HAS NO RATE, LETS SAY NO VALUE.
IF YOU TAKE A BANKNOTE OF 5.000 ISK ABROAD YOU JUST CAN GIVE IT TO THE WOMAN AT THE BANK´S DESK, SHE WILL TROW IT TO THE RUBBISH. IT IS WORTH NOTHING!!!
TOILET PAPER IS EVEN WORTHIER THAN THE ISK, BECAUSE AT LEAST YOU CAN DO SOMETHING USEFUL WITH IT…
THE KRONA IS DEAD, DROP IT!! OR WELL, JUST KEEP WITH YOUR ENDLESS THING ABOUT THE EUROPEAN UNION AND HOW BAD IS FOR YOU. HAHAHHAHAAHA
IF THERE IS SOMETHING BAD FOR THIS COUNTRY IS ITS INCOMPETEND POLITICIANS, ITS CORRUPTED BANKS AND ITS HEARTLESS BUSINESSMEN THAT HAVE ALL TAKEN ALL THE MONEY OUT OF THE COUNTRY, AND NOT ONLY THE ICELANDERS MONEY, BUT ALSO THE MONEY OF HUNDREDS OF THOUSANDS OF PEOPLE FROM AROUND THE WORLD. NOW ICELANDERS HAVE TO PAY FOR IT ALL…
GET REALISITIC!
@roelof woudstra
While capital controls are not lifted, ICB can place ISK 140 to Euro today, ISK 165 to Euro tomorrow, …
When ICB is lifting capital controls – in 2010 -, we will see the REAL exchange rate; now, we do see a fictitious one.
Anyway, never ISK 100 against Euro again -January 2008- unless US$ = Euro 1.25-1.40 !!!! And now, US$ = Euro 0.75 . Fine exchange rate would be 150-160 but, icelandic situation is VERY complicated now, a labyrinth, and anything can happen. But, I would say, never less than 140 to Euro.
If ICB lifts capital controls and the kronur floats now, we could see 400 or 500 against Euro: the hell.
Last real down was when the Kronur went over 340 per Euro.
@sir euro – the Euro is far from a solution. It is paper money, just like the krona, and eventually it will be worth as much as the krona. We cannot escape the fact that people trade time and effort and skill for products or services worth an equal amount of time and effort and skill. It doesn’t take much to create paper money. Gold or silver or fish do take effort. Let’s use a money backed by a real commodity. So the Euro provides no help economically, and politically it’s worse. Do you think Icelanders want to be ruled by a dictatorship miles across the atlantic??? Voters should only be about an hour’s drive from the people who can spend their money and control their lives…
DAVE YOU HAVE A DEMAGOGIC AND OBSOLETE IDEA OF THE EUROPEAN UNION. THE EUROPEAN UNION IS A DEMOCRATIC ENTITY WHERE ALL THE EUROPEAN POLITICIANS HAVE BEEN DEMOCRATICALLY ELECTED IN THEIR COUNTRIES OF ORIGIN.
WE COULD HAVE COINS MADE OF GOLD, BUT THEM YOU COULD BUY A HOUSE WITH MAYBE 50 COINS OR A CAR WITH TEN. NOT TOO PRACTICAL AS THERE IS MANY STUFF THAT IS WORTHY WAY LESS THAN A COIN OF GOLD.
PAPER MONEY IS NECESSARY FOR THE KIND OF WORLD WE HAVE TODAY, OR LETS CALL IT, ELECTRONIC MONEY. 75% OF THE MONEY IS ELECTRONIC.
BUT YOU SHOULD KNOW THAT A CURRENCY IS BACKED BY AN ECONOMY. THE ECONOMY MARKS THE PRICE AND VALUE OF A CURRENCY.
THE RESULT FOR THE KRÓNA TO HAVE NO VALUE AT ALL IS BECAUSE THE ICELANDIC ECONOMY HAS DEFAULTED TO BACK THE CURRENCY. ICELANDIC ECONOMY IS NOT BIG ENOUGH TO BACK A CURRENCY IN THIS GLOBALIZED WORLD.
IT WOULD BE PRETTY DIFFERENT IF THE ICELANDIC KRÓNA WOULD HAD ALREADY BEEN PEGGED TO ANOTHER STRONGER CURRENCY YEARS AGO, BUT NOW IT IS TOO LATE.
YOU ARE RIGHT, THE EURO IS NOT GOING TO SAVE ICELAND, MAINLY BECAUSE ICELANDIC ECONOMY HAS NO WAY TO GET ACCESS TO THE USE OF THE EURO. THAT WOULD BE INCREDIBLY EXPENSIVE FOR THE COUNTRY. SO THE EURO IS A LUXUS THAT YOUR ECONOMY CAN SIMPLY NOT AFFORD.
Bravo Dave, I wish more people would realise how much better off we would be if we put our monies back on a commodity based system. Where as it may affect inflation a bit more, it would still show economic value in a more honest light than the free floating currency that only pseudo-intellectual elitist academia types could try to justify.
I have a lot of ISK which I can’t convert to another currency. Does anyone have any ideas of how I can not lose my money and somehow convert it back to Dollars or Euros at a decent rate?
@Shula
I think you shouldnt be worried about a “decent rate”, whatever rate you can get just change it even if its 250kr per Euro or more, the krona will desapear sooner or later but It wont go at 180 for sure, it will first go up to 3 or 400 before they change it to other currency.