The considerable strengthening of the Icelandic Krona over the past year has begun to have a tangible impact on the tourism industry.
Initial responses to a proposal to take the 5,000 and 10,000 króna bills out of circulation to counter tax evasion show that society is not yet ready for such a radical idea, according to Iceland’s Minister of Finance Benedikt Jóhannesson.
Despite a recent drop in the value of the Icelandic króna, it is likely to keep rising in the long term, according to Daníel Svavarsson, an economist at Landsbankinn bank.
The strong value of the Icelandic króna has begun to threaten Icelandic companies, and as a result, jobs, Iceland’s Minister of Finance Benedikt Jóhannesson told RÚV earlier this week.
Representatives of fish processing companies in the northern part of the West Fjords are worried about the strong value of the Icelandic króna, which has caused them a considerable loss of income.
The majority of Icelanders would like to do away with the Icelandic króna and adopt a new currency, regardless of whether Iceland joins the European Union.