The unit of currency used in Iceland is the Icelandic krona, ISK – Íslensk króna in Icelandic. Króna means crown.
The Icelandic word in the singular, “króna”, becomes “krónur” in plural. The international currency abbreviation is ISK, but in Iceland you will see “kr.” before or after the price of things. Coin denominations are: 1 króna; 5, 10, 50, and 100 krónur. Banknotes are: 500, 1000, 2000, 5000 and 10000 krónur.
The Central Bank of Iceland issues the daily rate of exchange. Information on current exchange rate in English can be found on the website of the Central Bank of Iceland.
All banks can exchange currency and most hotels, but you are likely to get a better rate at the bank. Some shops catering to tourists will accept payment in US dollars or euro but not necessarily at the best rate. Almost every shop and most businesses accept Visa and MasterCard credit cards although American Express is not as common. Cards are commonly used in Iceland even for quite small transactions.
However, if you intend to visit isolated villages, or stay in rural farmhouse accommodation in Iceland, it’s a good idea to carry enough cash to tide you over.
ATMs – Hraðbanki in Icelandic, or Cashpoints, are easily found in cities and towns. Banks will advance cash against main debit and credit cards, exchange notes and cash travellers cheques.
It is best to exchange your money into ISK in Iceland, and re-exchange any surplus before you leave, as foreign banks may not deal in ISK. You can exchange your money at the Landsbankinn bank at the airport on arrival and departure.
Excellent exchange rates mean that Iceland is also a great destination for shopping. Icelandic design is internationally acclaimed and haute couture and top fashion brands can be purchased at competitive prices. Tax-Free service in available Iceland for all visitors. Icelandic shops are also known for their sales; in Icelandic: útsala (plural: útsölur). Prices include tax, unlike prices in the US.