No, Iceland does not officially use the Euro, but in practice, you can often use the Euro (or US Dollars) while traveling in Iceland. But we wouldn’t count on it.
The almighty Icelandic Króna
Image from CNBC
Iceland is the smallest country in the world to have its own currency (the Icelandic króna – ISK) and monetary policy. Some say we are very fortunate to be able to control our currency. Others claim that the króna is a burden because its exchange value is always shifting. And thus the cost of our imported and exported goods and services can differ from one month to another. Sometimes, this can be a good thing for tourists. If you come in a year when the Icelandic króna is weak, such as 2018, your vacation can turn out to be more economical than you expected. However, if you come in a year when the króna is strong, you will probably pay a little more.
Luckily, many Icelandic tourism companies, like Cozy Camper, have their prices fixed in Euro or USD. By doing so, they are taking on the exchange risk instead of their customers.
Pay with your card or use ATMs
Another good thing about traveling in Iceland, money-wise, is that you can pay with your credit or debit card everywhere you drive. Even for mountain parking, so there is no need for a lot of cash. If you do find yourself needing some money, we also have ATMs in pretty much every town around the country.
So, does Iceland use the Euro or not?
To answer the question, “Does Iceland use the Euro?” the official answer is no. But in reality, the answer is yes, but you have to get used to different exchange rates from time to time. Your best bet is to familiarize yourself with the exchange rate upon arrival. Then choose the one in your favor when you can.Back to blog