The local currency is the Icelandic 'krona (ISK). Sample exchange rates (June 2007): 1 GBP = 140 ISK, 1 USD = 71 ISK, 1 EUR = 89 ISK. Note: You will get a better rate of exchange if you buy and sell your krona in Iceland itself.

Cost of Living

Getting to Iceland can be done very economically: Icelandair offers many excellent fares and promotions. However, as soon as one steps off the plane the situation changes quite drastically. In Iceland, everything is very expensive. Particularly expensive are fresh vegetables (especially organic, if you can find them) and beer (minimum 500 ISK / pint = US$7.04 or GB£3.57, averaging at 600 ISK. Spirits are priced even higher, as alcohol is taxed by how strong it is). A three-course meal in a mid-range restaurant can easily cost 5000 ISK ($70 or £35 without alcohol). A similar meal in a top restaurant will cost about 9000 ISK ($126 or £64 again, without alcohol). A small rental car will cost at least 4000 ISK per day ($56.33 or £28.57 if you shop around...a lot), and you should expect to pay about 130 ISK/L for petrol (that works out to about $7.20/gallon or £1/Litre). On the other hand, smoked salmon is quite reasonably priced---unfortunately bagels and cream cheese are not.