Iceland’s Own Currency Costs Outweigh Benefits, Ministry Says

MarketsCurrenciesIceland’s Own Currency Costs Outweigh Benefits, Ministry SaysFacebookXLinkedInEmailLinkGiftExpandA customer holds an Icelandic 5000 krona banknote in Reykjavik, Iceland. Photographer: Arnaldur Halldorsson/Bloomberg FacebookXLinkedInEmailLinkGiftGift this articleContact us:Provide news feedback or report an errorConfidential tip?Send a tip to our reportersSite feedback:Take our SurveyNew WindowFacebookXLinkedInEmailLinkGiftBy Ragnhildur Sigurdardottir and Ott UmmelasMay 29, 2026 at 3:16 PM UTCBookmarkSaveThe drawbacks to Iceland from having its own currency likely exceed the benefits, the country’s Finance Ministry said, citing the conclusions of a government-commissioned report. The krona has been a bone of contention as it’s often linked to high inflation and interest rates on the Atlantic island that’s prone to boom-bust cycles. The Nordic country currently has the highest borrowing costs in western Europe, with consumer-price gains overshooting the central bank’s target for much of the past decade.