Iceland Currency Guide: Converting Icelandic Krona to USD

Ferran
24. Jun 2024 ∼ 10 min. read

If you've looked into Iceland, you may certianly have found prices to be in our own unique currency.

But how do you convert it? Look no further! In this article, we will provide you with all the information you need to know about converting Icelandic Krona to US Dollars. We've got the best rates, tips, and tricks for a smooth currency exchange process.

Understanding Iceland's Currency: Key Information for Travelers

The official currency in Iceland is the Icelandic Króna (ISK), used throughout the country. Common Icelandic Króna (ISK) denominations include 50 and 100 coins, with higher values available in banknotes. Iceland used the Danish Krone before establishing the Icelandic Króna in 1922. The Bank of Iceland plays a vital role in regulating the country’s banking sector and currency. The Central Bank of Iceland monitors currency stability and manages inflation rates. The Central Bank oversees Iceland's monetary policy, ensuring the stability of the Icelandic Króna. Currency exchange services are available at Keflavík International Airport, allowing travelers to get ISK upon arrival. Cards in Iceland are widely accepted, and most places, even remote ones, accommodate credit and debit card payments. Visitors can take advantage of tax-free shopping in Iceland by obtaining refunds on certain purchases.

Exchanging ISK and USD

What is the exchange rate for $1 US in Iceland today?

As of June 24, 2024, the exchange rate for $1 US dollar was 139.44 Icelandic Krona (ISK). This information is always subject to change based on market fluctuations. Always check the most current exchange rate before making any currency conversions.

Whether you're planning a trip to Iceland or simply need to make a currency conversion for personal or business reasons a currency converter provides real-time exchange rates for over 190 currencies.

Is the US dollar strong in Iceland?

The US dollar is relatively strong in Iceland as the exchange rate of 1 USD to 143 ISK makes it a favorable rate for those with US dollars. This makes it convenient for US visitors to visit Iceland and take advantage of the favorable exchange rate. However, it's important to keep in mind that exchange rates fluctuate regularly, so it's wise to stay updated on the current rates before making any major financial decisions while in Iceland.

Is USD accepted in Iceland?

Yes, Iceland does accept USD, along with a variety of other currencies such as Canadian dollars, Euros, and Scandinavian currencies. However, the official currency in Iceland is the Icelandic króna (ISK). While many places in Iceland may accept US dollars, it is most common for Icelanders to pay for goods and services using credit or debit cards and contactless payments. We recommend keeping a credit card with you whenever you’re out.

Understanding Iceland's Currency: Convert Krona to USD

Understanding Iceland's currency is essential for a smooth travel experience. The Icelandic Krona (ISK) is the currency in which all prices are listed, and while credit cards are widely accepted, having some cash on hand is recommended for smaller purchases as it saves you sales tax. To convert Krona to USD, simply use a currency exchange service or withdraw cash from an ATM using your card. Keep in mind that exchange rates and tax may vary, so it's wise to monitor the rates and plan your currency conversion accordingly. By familiarizing yourself with Iceland's currency and knowing how to convert Krona to USD, you'll be well-prepared to navigate the shopping aspect of your Icelandic adventure.

Mastering the Exchange Rate

In the case of quickly converting ISK to USD in your head, it's good to set common purchases as reference points. In this case, the average beer as of 2024 is around 1500 ISK. In the current exhange rate, this amounts to nearly 11$. A famoud Pylsur hot dog in the heart of Reykjavik amounts to 550 ISK, which is 3.99$. Lastly, filling up on fuel will cost you around 8000-10.000 ISK, which will cost you around 60-70$. 

With these reference points you're able to get a better feeling for the currency. You can easily add and subtract between them that way!

When planning your trip to Iceland, understanding the local currency and how to manage your finances is crucial. Equally important is choosing the right services for your journey, including Iceland campervan rentals. Our comprehensive guide on Iceland campervan rentals offers valuable insights into selecting the perfect vehicle for your adventure. With the right campervan, you'll have the mobility and comfort to explore the country with ease. As you delve into the details of managing Iceland's currency and expenses, consider the convenience and flexibility of campervan rentals for a memorable journey. With Iceland campervan rentals, you can focus on enjoying the stunning landscapes and unique experiences while we take care of the logistics.

Take advantage of your budget for your trip to Iceland

Notoriously expensive, more zeroes than you’re used to, an almost cashless society. So just how does money work in Iceland? So, how expensive is Iceland?

The answer is: it can be quite costly. Iceland is one of the most expensive countries in the world; you will be shocked by how expensive things are. But there are ways to prepare yourself to make sure that you are responsible with your budget and don’t blow it all out on a dinner.

The Icelandic Krona

Iceland's money is called the Icelandic Krona (ISK). Be sure to check out the current exchange rate before you arrive, and to prepare yourself accordingly because once inside the country things can get expensive.

Why is Iceland so expensive though? The geographical nature of the country, isolated and hostile in the far North Atlantic, means that it needs to import a lot of goods. High taxes on imports drive prices up even further.

Another factor is the volatile Icelandic economy, which is easily troubled by events, strengthening or weakening the krona much more so than it would in America or Europe. The Central Bank of Iceland is highly protective of its currency.

The (Almost) Cashless Society

Carrying any currency in Iceland is a rare thing for most locals, who rely altogether on their bank cards. Even at the remotest campsites with no one else about, there will likely be a credit card machine to take payment from you.

One problem that arises quite often, mostly with cards from the United States, is filling up your campervan at an unmanned petrol station. Here you obviously must pay with a card, and you must have a pin number to put in for the payment to be authorized. A lot of American cards are signature only, so if that’s the case, make sure to stop in at a manned gas station and buy a pre-paid gas card to use later.

Even though nearly everywhere accepts cards, it does always pay to have a little bit of cash on you (you can withdraw some cash at the airport when you arrive). If you visit a remote hot spring, there might be an honesty box on site asking for a small donation, put towards keeping the pool and facilities clean. Some bathrooms at major tourist sites charge a small fee (around 100–200 ISK).

Note that American Express is not widely accepted in Iceland.

Exchanging Money for Icelandic Kroner

If you’ve brought a lot of your own currency into the country, you might need to exchange it for Icelandic currency (USD isn’t accepted inside the country). The best place to do this is at the airport, where a small currency converter desk is located in the arrivals hall. Otherwise, you’ll have to make a trip into downtown Reykjavik and wait in line at a bank, which is not high on the list of things people want to do when they first pick up their campervan.

Currency Rates: $10 USD = 1,400 ISK

Do you tip in Iceland?

Iceland has never been a country where tipping is expected. Wages are high, the average income for Icelanders is one of the best in Europe, and all service fees are already included in the prices. Recently, tip jars have appeared in restaurants and bars across the country, with the money collected typically going towards the annual staff party.

In restaurants, rounding up the bill if the service was good is appreciated, but not required. Taxis are the same – no one will be offended if you leave them a small tip, even if it’s just to make it a more rounded price. Any added tax is also included in the total price.

The Costs of Some Common Things in Iceland

• Space at a campsite: 1500 – 2000 ISK (be warned that some campsites charge per campervan, others charge per person).
• Entry to a local swimming pool: 400 – 1000 ISK.
• Burger, fries, and a drink: 2500 – 3500 ISK.
• Hot dog from a gas station: 400 – 600 ISK.
• A tank of fuel for the GO Smart Camper 2-pax: 6000 – 7000 ISK.
• Clothing souvenirs (Icelandic woolly sweater): 20,000 ISK.

8 Tips for Saving Money in Iceland

1. Bring a reusable water bottle. Water in Iceland is some of the cleanest in the world, and you can fill up your bottle right out of the tap (and even some rivers). 
2. Buy your alcohol duty-free. When you arrive, buy any alcohol you plan to drink at the airport before you leave the luggage collection area. Much cheaper than what you’ll pay inside the country.
3. Seek out the free hot springs. The Blue Lagoon and Mývatn Nature Baths both cost quite a bit to enter, but they’re definitely worth it. To save a bit of money, keep an eye out for natural hot springs that are smaller and free of charge. Here are The 10 Best Hot Springs in Iceland.
4. Hunt the happy hours at the bars. If you’re spending a night or two in Reykjavik or Akureyri and want to visit some bars, be sure to look up when the happy hours are so that you’re not breaking the bank on a few beers.
5. Do your grocery shopping. Eating out in Iceland is almost prohibitively expensive. Be smart and stock up at the grocery store for your campervan trip. 
6. Travel in the off-season. Prices for everything are lower during seasons other than the Icelandic summer. Think about planning a trip for the off-season instead (from September until May). Here's The Best Time to Travel to Iceland and Rent a Campervan
7. Make use of the fuel discount card. We at Go Campers will give you a fuel discount card that you can use at some of the gas stations around the country. Only a little bit, but every little bit helps.
8. Do some tax-free shopping in Iceland. Iceland has a tax-free shopping arrangement. Simply ask for your tax-free receipts at stores and turn them in at the airport for a refund.

Conclusion: Keep Updated!

Overall, the fluctuating exchange rate of the Icelandic króna to USD presents both challenges and opportunities for investors and travelers alike. While the króna's volatility may deter some, savvy individuals can take advantage of favorable rates to maximize their returns or savings. By staying informed and making strategic decisions, one can navigate the currency market with confidence and potentially benefit from the ever-changing value of the Icelandic króna.