After a period during which Icelandic kronur were virtually unavailable outside of Iceland, travellers are once again able to buy the currency before arrival. But some airport bureaux de change are taking their usual business model a step further.
Airport exchange desks are not known for their great value for money, but the Icelandic krona is offering unusually fertile ground right now. IceNews sources in London report sales rates of one pound to 186 kronur while it will cost 245 kronur in order to purchase one pound on the way back into the UK. That’s a 25 percent difference.
Meanwhile, a pound will currently buy 210 kronur at Landsbanki in Iceland and tourists leaving the country can buy a pound for 212 kronur. The difference there is just half of one percent and both buying and selling are considerably better value in Iceland.
If you are planning to visit Iceland this summer – beware!
Once again missleading information, price the article says about the krona here in iceland is the interbanking price but the desk price for tourists or individuals that go to the bank and exchange currency is very different, is much higher They buy a pound for almost 216 and sell the ponund for 206, (10 krona differnce between the sell and buy price)and at the Airport in Keflavik is even worse they sell the pound at about 221 and buy it at 203 (thats 18 krona difference). Still a “better rate” but the price the article mentions is not the window exchange rate.
That’s the biggest tourist spread I’ve ever heard of. The arbitrage business in ISK must be booming. Do you know which airport was charging those rip-off rates: Heathrow (for IcelandAir) or Gatwick (for IcelandExpress)?
I consider a total swindle: ICB fixes the best exchange rate for the Icelanders, and this is 210 per a pound (179 against Euro). 186 per a pound???? A swindle!
We do forget exchange fee … If I do change money in London, 500 pounds, I would get 93000 kronur. 93000 kronur are GBP 443, ICB. I do not use this money since I did use my card, and, I want to change back these kronur, and, exchange rate is 245 in UK, I would get GBP 379, and I am forgetting the exchange fee. So, same amount of kronur would be 75%, even 70% if I do add the exchange fee, and I did spend nothing! Conclusion: you should buy icelandic kronur in Iceland and, if you do buy icelandic kronur in UK, please buy items in Iceland and burn until the last krona or, you will be swindled in UK! And, it is good for the Icelandic economy!
In Spain, even I could not change those kronur! I could only buy!
By the way, I do not know why they do put a photo with a banknote of 2000 kronur: the 2000 kronur banknotes exist but are unusual. Their use never become widespread. Only 2,3% of the banknotes in circulation. Only 500, 1000 and 5000. ICB, when a note of 10000?
June 28th, Ask for 430 kronur per a pound (365 against Euro); free market
Hi Easy,
I bank with Landsbanki and every time I change money with them in-branch I always get the same rate quoted on their website (which is the rate I referred to in the article).
I do, however, agree with you that the Landsbanki branch in the airport does not offer the same value.
Kind regards
Alex, editor
The Rate quoted on any bank’s page or in the central bank page is the interbanking rate, in other words if you make a bank transfer from bank to bank but you dont get the money the actual paper in your hand, the window (desk) rate whan you actually get the money in your hand to spend off course with a plane tiket or if you are a tourist is usually about 6 krona higher on the sell price and 6 krona lower on the buy price, so if they put Buy 210 Sell 212, its only the Interbanking rate the window price is actually about Buy 205 Sell 217. So Alex maybe you made a money transfer, but you didnt exchange actual currency.
Anyways this people in the exchange bureaus at London know that brits are travelling to Iceland now so they got some krona to try to make some bussiness.
Who cares? You either have money or you don’t :-(
Landsbanki never showed the hard currency rate in their website or anywhere else. However you can ask at the desk to have the daily rate printed for you.
For a large amount of money, getting cash is VERY expensive. You’re better off doing a transfer bank to bank.
No one could be better than Italy when frauds comes. Tourists are the best victims.
Beware!
On Jun 29, 2009, Mal said:
“For a large amount of money, getting cash is VERY expensive. You’re better off doing a transfer bank to bank.”
Not true for other currencies, even in cash. For instance the spread on the Polish Zloty to GBP can be tiny. 5.29 to 5.25 thats 0.76% versus the 25% spread on the ISK.
>No one could be better than Italy when frauds comes.
Are you ever going to tell us what happened? Normally I wouldn’t care, but you manage to weave how untrustworthy/vile/despicable Italy is into almost every post.
My goal is just to tell Icelanders to open their eyes without becoming a fake-nation like us. No kidding, we spread a FALSE POV of us abroad 24/7. Tell me, what may I gain on telling a lie ? ;)
I’m on another workstation now, so I can’t provide you any useful source which I have collected. Do you use IRC (irc.efnet.net) or MSN ?