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

C

colly

Registered User
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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
 
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.
 
Re: Iceland curreny

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


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
 
Re: Iceland curreny

shnaek said:
They should have joined the Euro. Lucky us that we did, or we might be in the same boat.
Click to expand...

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)
 
Re: Iceland curreny

Their prime minister has said that he thinks that they are only the tip of the iceberg.
 
Card said:
how could they have joined the euro? they're not in the EU
Click to expand...
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.
 
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
Click to expand...

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
 
Re: Iceland curreny

ontour said:
Their prime minister has said that he thinks that they are only the tip of the iceberg.
Click to expand...




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.
Click to expand...

Btw delivery is by collection only.
 
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%.
 
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...
 
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.
 
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