Iceland’s Economics Minister Considers CAD

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Iceland’s Economics Minister Considers CAD

Icelandic Minister of Economic Affairs Steingrímur J. Sigfússon, who just returned from a visit to Canada, commented that even though it is not the government’s policy to assume a currency collaboration with Canada, the idea of pegging the Icelandic króna to the Canadian dollar through a unilateral or bilateral agreement is not “absurd”.

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Steingrímur J. Sigfússon. Photo by Páll Kjartansson.

The purpose of the minister’s visit was to talk with bankers, ministers and parliamentarians, primarily on the laws of banking and supervision with financial markets; it is sensible to increase financial and political ties with Canada, he told ruv.is.

He added that the idea of a currency collaboration was mentioned. However, it is something that would not happen in the immediate future; the viability of adopting the Canadian dollar in Iceland is currently being analyzed.

The idea has been discussed in Iceland before. Central Bank governor Már Guðmundsson called adopting the Canadian dollar unrealistic and Minister of Finance Oddný Harðardóttir declared it to be “crazy”.

ESA