Icelandic króna

Icelandic króna
íslensk króna (Icelandic)
500 krónur (1928) (not in use today)
ISO 4217
Code	ISK
Denominations
Subunit
1/100	eyrir (obsolete 2003)
Plural	krónur
eyrir	aurar
Symbol	kr, Íkr
Nickname	kall
Banknotes	500, 1000, 2000, 5000, 10,000 krónur
Coins	1, 5, 10, 50, 100 krónur
Demographics
User(s)	Iceland
Issuance
Central bank	Central Bank of Iceland
Website	www.sedlabanki.is
Printer	De La Rue
Valuation
Inflation	1%
Source	Hagstofa Íslands (Statistics Iceland, Nov 2014)

The króna (Icelandic pronunciation: ​[ˈkʰroːuna]; plural krónur) (sign: kr; code: ISK) is the currency of Iceland. The króna was historically subdivided into 100 aurar (singular eyrir), but this subdivision is no longer used.

Like the Nordic currencies (such as the Danish krone, Swedish krona and Norwegian krone) that participated in the historical Scandinavian Monetary Union, the name króna (meaning crown) comes from the Latin word ("crown"). The name "Icelandic crown" is sometimes used, for example in the financial markets. The word derives from Latin ("golden"), there being historically 100 gold pieces to a crown.

The Danish krone was introduced to Iceland in 1874, replacing the earlier Danish currency, the rigsdaler. In 1885, Iceland began issuing its own banknotes.

The Icelandic króna separated from the Danish krone after the dissolution of the Scandinavian Monetary Union at the start of World War I and Icelandic autonomy from Denmark in 1918. The first coins were issued in 1922.

Iceland was forced to devalue the Icelandic króna in 1922, by 23% against the Danish krone, which saw the beginning of an independent monetary policy in Iceland, and was to be the first of many subsequent devaluations of the króna.

In 1925 the króna was pegged to the British pound for the next 14 years until the spring of 1939. Later in 1939 the currency was pegged to the US Dollar, which was maintained until 1949.