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Forums » Iceland » Currency question

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Currency question

by PHeymont »

I'm not sure what kind of places are making this request, but when we were in Iceland in February, no one asked us for anything but ISK. When you mention the "state of Iceland's currency," you may be referring to the crash of several years ago, but it's quite stable now.

Charging in local currency is best for another reason: you avoid the possibility of Dynamic Currency Conversion (DCC) a procedure by which the merchant charges you in another currency (for your convenience, they say) at a highly favorable (to the merchant) exchange rate. Insist on charging in ISK, and your bank will do the conversion, at a rate near the bank's rate for transactions with other banks that day.

 

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ambassador

RE: Currency question

by ambassador »

Thanks so much! And good to know that the currency is stable. I hadn't heard of DCC but this makes a lot of sense. Really appreciate your help.

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drfumblefinger

RE: Currency question

by drfumblefinger »

Iceland's currency is much more stable now -- several years ago it was all but completely collapsed.  There's even talk that they will adopt the Canadian dollar as their currency, instead of the Euro (serious about that).

I've had a number of hotels quote rates in Iceland given Euros, I think mostly because the bulk of their tourists come from Europe.  But when at those hotels they always charge in ISK based on the currency exchange of that day.

I wouldn't worry about this too much.  I've found the people in Iceland to be pretty honest and fair.  Things might not be cheap but they will almost certainly be correctly charge.

By the way, a cash tip, withdraw some ISK from an ATM at the airport before leaving.  It's good to have some local currency in your pocket before you head into Reykjavik or elsewhere in Iceland.

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ambassador

RE: Currency question

by ambassador »

 

My wife and I are getting excited for our trip to Iceland next month. As I've been planning out our accommodations I'm coming across come establishments which prefer Euros to Icelandic Krona. Given the state of Iceland's currency and the number of European visitors they receive I guess this makes sense. But for someone like me who is visiting from a country which uses neither currency it poses a bit of a question about how to charge my credit card. I generally always change things to my credit card in the local currency when I travel. Do you know if there is any disadvantage to being charged in Euros while I'm in Iceland or would it be best request that all charges be made in Krona?
 

My inclination is to believe that the ISK is preferable to the euro. Although in theory, as long as the establishment is doing a reasonable job of calculating the ISK to Euro rate, it really shouldn't matter since my credit card will give me the best rate on either currency when they convert to USD.

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