The króna has seen sharp swings in recent decades (it crashed during the 2008 financial crisis and again in 2020), but as of 2026, the official mid-rate is about 1 GBP = 164.96 ISK. For reference, 100 ISK ≈ £0.61 (as per the Central Bank of Iceland’s rate).
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This article covers the króna’s denominations, circulation and usage stats, tourism spending, remittance flows, exchange-rate notes, historical anecdotes, and practical travel tips for using money in Iceland. For currency exchange or transfers, see CurrencyTransfer’s Online Currency Exchange and Spot Transfers services, and note that Iceland participates in SEPA payments.
Currency in Iceland
The Icelandic currency is the króna (symbol kr., code ISK). The name means “crown”. Banknotes come in 500, 1,000, 2,000, 5,000 and 10,000 krónur, and coins in 1, 5, 10, 50 and 100 krónur. The króna was established after Iceland’s 1918 independence from Denmark.
Since 1961, the Central Bank of Iceland has issued all notes and coins. The króna is a free-floating currency.
Banknotes and coins
The króna has both notes and coins, each adorned with Icelandic cultural motifs. Current banknotes (5-digit security notes) feature famous figures:
- 10,000 kr. – Poet Jónas Hallgrímsson (landscape).
- 5,000 kr. – Ragnheiður Jónsdóttir (educator/seamstress).
- 2,000 kr. – Jóhannes Kjarval (painter).
- 1,000 kr. – Bishop Brynjólfur Sveinsson (preserver of sagas).
- 500 kr. – Independence leader Jón Sigurðsson.
Current coins depict marine life on one side and the “four guardian spirits” of Iceland on the other. Denominations and designs include: the 1kr coin (Atlantic cod), 5kr (common dolphins), 10kr (capelin fish), 50kr (shore crab) and 100kr (lumpfish). Note that smaller subunits (aurar) were removed by 2003.
Below is a summary table of króna denominations with main motifs and usage notes:
| Denomination (ISK) | Type | Main design/notes |
|---|---|---|
| 10,000 | Note | Jónas Hallgrímsson (poet/nature) |
| 5,000 | Note | Ragnheiður Jónsdóttir (educator) |
| 2,000 | Note | Jóhannes Kjarval (painter) |
| 1,000 | Note | Brynjólfur Sveinsson (bishop) |
| 500 | Note | Jón Sigurðsson (independence leader) |
| 100 | Coin | Lumpfish; (guardian spirits on reverse) |
| 50 | Coin | Shore crab; (guardian spirits on reverse) |
| 10 | Coin | Capelin fish; (guardian spirits on reverse) |
| 5 | Coin | Dolphins; (guardian spirits on reverse) |
| 1 | Coin | Cod; (guardian spirits on reverse) |
Circulation and issuance
Iceland’s Central Bank has the exclusive right to issue krónur. At end‑Feb2026, about 68.7 billion ISK of currency was in circulation. Most of this is in banknotes (≈63.2bn ISK) with the balance in coins. The largest share by value is the 10,000kr note (over 62% of note value), and 100kr coins dominate coin circulation (65% of coin value). All smaller coins (down to 1kr) and denominations are legal tender. Because of inflation history, very low denominations (aurar) were withdrawn.
Payment habits: cards vs cash
Iceland is effectively a cashless society. Credit and debit cards are accepted at virtually all shops, restaurants, hotels and even taxis. In August 2025, 136.7 billion ISK was spent on domestic payment cards in Iceland, with 61.3bn on debit and 75.4bn on credit cards in just one month. In retail outlets alone, card turnover hit 102.8bn ISK (45.6bn debit, 57.2bn credit). By contrast, everyday cash use is very limited. Many smaller vendors or rural areas may prefer cash, but overall tourists find cards more convenient and secure. ATMs are widely available, but withdrawing cash often incurs fees. Because of SEPA membership (Iceland joined SEPA along with Norway and others), visitors from Europe can also use euro transfers or cards easily.
Tourism spending
Tourism is a major part of Iceland’s economy, and tourist spending in króna is huge. In 2024 inbound (foreign) tourism expenditure was about 519 billion ISK. Total tourism consumption (foreign and domestic visitors) hit nearly 870bn ISK in 2024 (≈£5.2bn), with final tourism expenditure ~840bn ISK. Domestic tourism (residents traveling inside Iceland) alone was 321bn ISK in 2024. (Tourism’s share of GDP was ~8.7% in 2024.) These large flows mean that service providers (hotels, tours, restaurants) handle króna in bulk, but most transactions are still card payments.
Exchange rate and volatility
The króna floats against other currencies. There have been some instances where the currency has become unstable; for example, there was a steep drop during the 2008-2009 economic recession period and also when the COVID-19 pandemic struck in 2020. Recently, the króna has proven to be stronger; at the start of 2026, the exchange rate was set at 1 EUR ≈ 143.6 ISK and 1 USD ≈ 122.9 ISK, while 1 GBP = 164.96 ISK. With this rate, 100 ISK = £0.61.
Fluctuations in exchange rates may impact the traveler's budget; generally, purchasing the currency in advance through an online forex service or securing a fixed exchange rate will eliminate any surprises on the day of payment. Despite the fluctuations, Iceland has not joined the eurozone, nor does it intend to switch to the euro.
Remittances
Iceland has relatively small remittance flows, reflecting its small population (≈376,000) and limited immigrant workforce. World Bank/IMF data show that Icelanders sent about $149 million abroad in personal remittances in 2016, while receiving about $201 million. In other words, outbound remittances equal only ~0.8% of GDP (2020 data).
These figures cover transfers between individuals and include workers’ compensation. The net remittance balance tends to be roughly balanced, with Iceland receiving somewhat more than it sends. In practice, most Icelandic households rely on domestic bank transfers (SEPA, SWIFT, etc.) rather than informal remittance channels.
Cultural and historical notes
The króna can trace its origins back to the period of Icelandic independence from Denmark in 1918. Since that time, the króna has been in existence and used consistently throughout the country. In 1927, Landsbanki Íslands acquired the sole rights to issue banknotes, which were taken up by the Central Bank of Iceland (Seðlabanki Íslands), founded in 1961. In order to address the problem of the country's high inflation rate, the króna was revalued in 1981 (100 old ISK = 1 new ISK) and its international code became ISK. Currently, the design of the banknote includes literary and nature images characteristic for Iceland; fishing scenes on coins represent this country's maritime past.
Due to the economic crisis of 2008, the value of the króna decreased dramatically, and tours to Iceland became extremely affordable and popular. When the currency strengthened again, Iceland got a reputation of being an expensive tourist destination.
How much is 100 Icelandic in GBP?
Using the Central Bank of Iceland’s official rate (as of April 2026), 1 GBP = 164.96 ISK. Therefore, 100 ISK ≈ £0.61. (Note: exchange rates fluctuate daily. Always check a reliable source or the Central Bank’s published rate before calculating.)
Is it better to take cash or card to Iceland?
In almost all cases take your cards, not cash. Iceland is very card-friendly: credit/debit cards are accepted everywhere from major hotels to small cafés, and even remote rural services usually have card machines. Carrying only a little cash (for tips – though tipping is not customary – or very small purchases) is fine. You can withdraw króna at ATMs if needed, but ATM fees can be high.
Because Iceland is in SEPA, EU residents can also use euro-denominated bank transfers when paying Icelandic bills, though merchants typically price in ISK. In practice, most travelers never need to visit a currency exchange office once there. Just make sure your cards have a Chip-and-PIN (NFC/contactless) capability, and inform your bank you’ll be traveling.
Currency acceptance
Cards (Visa/Mastercard) rule in Iceland. Always carry at least one backup card.
Withdrawals
ATMs (often labelled “Reiður” or “ATM”) are common in towns. Consider withdrawing slightly more króna at once to minimize fees.
Small vendors
A few tiny shops or buses may not take cards; keep ~5,000–10,000 ISK in cash (a few tens of pounds) just in case.
Exchange best practices
Avoid dynamic currency conversion (paying in GBP) – always choose to pay in ISK to get a better rate.
Receipts
Keep receipts of any large currency exchange or transfer in case of disputes.
Travelling to Iceland
In summary, Iceland’s currency is the króna (ISK), and for visitors the practical focus is on knowing the latest exchange rate (e.g. £1 ≈ 165 ISK), understanding that cards dominate transactions, and recognising key króna denominations.
For anyone sending or receiving money internationally, CurrencyTransfer’s services handle ISK along with other major currencies.
Caleb Hinton
Caleb is a writer specialising in financial copy. He has a background in copywriting, banking, digital wallets, and SEO – and enjoys writing in his spare time too, as well as language learning, chess and investing.
