Wondering if you can use US dollars or Euros in Iceland? This guide covers everything you need to know about the currency in Iceland, exchange options, and the best way to pay during your visit.
Content:
- Does Iceland Accept US Dollars or Euros?
- Currency in Iceland
- Exchange Rates for USD, EUR, and Other Currencies
- Where to Exchange Currency
- Is It Better to Pay with Card or Cash?
- Tipping Culture in Iceland
Does Iceland Accept US Dollars or Euros?
Iceland is a popular destination for travelers from all over the world, and many visitors wonder whether they can use their US dollars (USD) or Euros (EUR) while exploring this beautiful country. The short answer is that neither US dollars nor Euros are accepted as official payment methods in Iceland. The country’s official currency is the Icelandic króna (ISK), which you’ll need for most transactions.
Currency in Iceland
The Icelandic króna (ISK) is the only legal tender used in Iceland, and it comes in both coins and banknotes. Coins include denominations of 1, 5, 10, 50, and 100 króna, while the banknotes come in denominations of 500, 1000, 2000, and 5000 króna. While larger purchases like hotel stays or guided tours may sometimes be paid with cards, it’s still common to need króna for smaller purchases, especially in more rural areas. The króna is a relatively stable currency, but it’s important to keep track of the exchange rates to ensure you get the best value for your money.
Exchange Rates for USD, EUR, and Other Currencies
Both US dollars (USD) and Euros (EUR) can be exchanged for Icelandic króna (ISK), but the exchange rates can fluctuate. The exchange rate for USD to ISK generally ranges between 130 to 140 ISK for 1 USD. The Euro, being the currency of a neighboring region, is often more widely accepted and may offer slightly better exchange rates, typically ranging between 140 to 150 ISK for 1 EUR.
Other popular currencies, such as the British Pound (GBP), Canadian Dollar (CAD), and others, are also exchangeable, though the rates will vary based on market conditions. It’s a good idea to check the latest exchange rates before traveling or exchanging currency to avoid any surprises.
Where to Exchange Currency
While US dollars and Euros can be exchanged for Icelandic króna, the most convenient and cost-effective method of exchanging currency will depend on where you are. Currency exchange services are available at Reykjavik’s Keflavík International Airport, along with banks and exchange offices in major cities and towns across Iceland. However, exchange rates at airports are often less favorable and may include additional fees.
For better exchange rates, it’s recommended to use ATMs, especially those in urban areas. Many ATMs in Iceland offer competitive rates and allow you to withdraw króna directly from your bank account. You can also exchange currency at Icelandic banks, but remember to consider potential service charges or fees that could apply.
Is It Better to Pay with Card or Cash?
Iceland is one of the most card-friendly countries in the world, and using credit or debit cards is the most convenient way to pay for most purchases. Cards such as Visa and Mastercard are accepted almost everywhere, including in restaurants, shops, and taxis. Mobile payment apps, like Apple Pay and Google Pay, are also gaining popularity in Iceland, making card payments even more convenient.
While cash is still used in certain situations, particularly in rural areas or for smaller transactions, paying with a card can save you time and money. You won’t need to worry about carrying large amounts of cash or constantly exchanging currency. However, if you’re heading to more remote regions, having a small amount of cash on hand is advisable, as some businesses may only accept cash or may not have card payment facilities.
Tipping Culture in Iceland
Iceland does not have a strong tipping culture, and tipping is not expected in most situations. Service charges are typically included in bills at restaurants, hotels, and for guided tours. If you feel the service was exceptional, a small tip is always appreciated, but it is entirely optional. Whether paying by card or cash, tipping is at your discretion.
Conclusion
In conclusion, neither US dollars nor Euros are accepted directly in Iceland, and the Icelandic króna (ISK) is the only currency you’ll need. While currency exchange services are available at banks and airports, paying with a credit or debit card is the most convenient and cost-effective way to handle transactions in Iceland. ATMs offer a good option for withdrawing cash in króna, and card payments are accepted widely, even for smaller purchases. Remember to check exchange rates before you travel, and while cash is useful in some situations, cards will often be the preferred choice during your stay.
