# Iceland: economy implodes — currency loses half its value: 1 ISK = 0.003 EUR



## colly (9 Oct 2008)

I just read this story: [broken link removed]

Seems Iceland is in big trouble and the currency is in big trouble.
Just look at this:

http://finance.google.com/finance?q=ISKEUR

I would not risk investing in it, but maybe a holiday there would be way cheaper now the the currency has devalued.... A friend of mine was just asking me to go there with him the other day

Am I right or have I got it the wrong way around


----------



## agoose (10 Oct 2008)

*Re: Iceland curreny*

It is in trouble. All 3 of its top banks have been nationalised. 

Since Thursday morning access has been blocked to the accounts of the last of these. Ordinary people may lose their money.

The Krona has weakened against the Euro - you are getting more Krona for Euro - about 150 compared to 130 one month ago.


----------



## ajapale (10 Oct 2008)

*Re: Iceland curreny*

Moved from  Askaboutbusiness to  The Great Financial Debates.


----------



## shnaek (10 Oct 2008)

*Re: Iceland curreny*

They should have joined the Euro. Lucky us that we did, or we might be in the same boat.


----------



## badabing (10 Oct 2008)

*Re: Iceland curreny*



agoose said:


> It is in trouble. All 3 of its top banks have been nationalised.
> 
> Since Thursday morning access has been blocked to the accounts of the last of these. Ordinary people may lose their money.
> 
> The Krona has weakened against the Euro - you are getting more Krona for Euro - about 150 compared to 130 one month ago.



Is that a typo Agoose, the Euro is now 300 Krona compared to around 100 some months ago? - see Colly's link to google finance above


----------



## Card (10 Oct 2008)

how could they have joined the euro? they're not in the EU


----------



## CGorman (10 Oct 2008)

*Re: Iceland curreny*



shnaek said:


> They should have joined the Euro. Lucky us that we did, or we might be in the same boat.



I don't think we'd be quite as badly off as they are... 

> they have a population of size no bigger than Kildare & Meath combined
> they allowed their banks to go on a collosal levereged spending spree leaving a massive current account deficit (16% versus our 5-7% deficit). 
> their economy is very un-diversified, even compared to Ireland, (fish makes up 70% of exports!)
> they were very exposed to carry trades given the currencies tiny size and high interest rate (15%) which has created imbalance (it's unlikely our rate would be anywhere near as high if we were still punt)
> they did'nt have to adhere to EU regulation (something our financial sector had to do to a large degree irrespective of Euro membership or not)


----------



## ontour (10 Oct 2008)

*Re: Iceland curreny*

Their prime minister has said that he thinks that they are only the tip of the iceberg.


----------



## z109 (10 Oct 2008)

Card said:


> how could they have joined the euro? they're not in the EU


Well, that is the point really, they chose to stay out of the common market so they wouldn't have to share their fishing rights, if dim and distant memory serves me well.


----------



## agoose (10 Oct 2008)

*Re: Iceland curreny*



badabing said:


> Is that a typo Agoose, the Euro is now 300 Krona compared to around 100 some months ago? - see Colly's link to google finance above



According to the chart supplied it shows €1=128.51ISK on 09.09.08

It shows €1=150.55 ISK on 09.10.08 i.e as I originally stated one month later .

The chart does show the price at  300 on 10.10.08 i.e today. However,  this page also states (i.e. not taken from the chart) the €/ISK rate is 131.225 @ 17:00 today.

Oanda shows the cash rate as being 131.188 on 09.09.08 and 156.427 on 09.10.08. They show a rate of 148.56 for 10.10.08

The lowest (since 01.01.08) was 94.708 on 05.01.08
Highest 167.68 on 07.10.08
 Average to date 121.55


----------



## MichaelDes (10 Oct 2008)

*Re: Iceland curreny*



ontour said:


> Their prime minister has said that he thinks that they are only the tip of the iceberg.


 

  

For those interested Iceland is for sale on Ebay current bid $10,000,000

[broken link removed]

_question from one of the bidders_


> Q: Can you let me know if my mum is still there? She went last week & hasn't returned.10-Oct-08A: All Mums will be removed before the item is sold.


 
Btw delivery is by collection only.


----------



## simplyjoe (10 Oct 2008)

Dealt with Icelandic investors in Germany and UK. They were unbelievably reckless and bought everything that moved. Usually gazumping everyone by anything up to 20%.


----------



## ontour (11 Oct 2008)

Is there any truth in the rumours that there could be a housing meltdown in Iceland with banks threatening to liquidate some of the igloos...


----------



## rmelly (11 Oct 2008)

*Re: Iceland curreny*



MichaelDes said:


> Btw delivery is by collection only.


 
From Croydon, of all places.


----------



## nicelives (11 Oct 2008)

lovely country in terms of free energy and people, but being on holidays there a year ago, I was kinda freaked out about the price of things...over €10 for a pint of beer and the locals didn't seem to mind, would definitely recommend the OP to go on the trip with prices heading back towards reality.


----------



## PostTiger (12 Oct 2008)

Iceland in meltdown, as if Kerry Katona's financial troubles weren't bad enough.


----------



## rmelly (12 Oct 2008)

PostTiger said:


> Iceland in meltdown, as if Kerry Katona's financial troubles weren't bad enough.


 
I'd have thought that if anyone could keep iceland in business it would be her?


----------



## webtax (12 Oct 2008)

simplyjoe said:


> Dealt with Icelandic investors in Germany and UK. They were unbelievably reckless and bought everything that moved. Usually gazumping everyone by anything up to 20%.



Icelandic or Irish???


----------



## simplyjoe (5 Nov 2008)

webtax said:


> Icelandic or Irish???


 
Probably a fair comment!!!   Both!!! Not me though.


----------

