Iceland’s current currency, the króna, certainly isn’t cutting it for the Nordic country at the moment. There has been much discussion in Iceland’s central bank about the issue on hand, and they’ve finally released a massive report on all the options they could take. Among those options were to join the Euro, adopting a similar Nordic currency, choosing the British Pound, the greenback, or loonie. As many of us would tend to think, the loonie would seem like a very sound and viable option. However, there are many arguments against it that are pretty strong, including but not limited to: the loonie is too small of a currency on the world stage, Iceland itself does not trade with Canada often, and the 2 countries do not have many similarities in business cycles. What we do have going for us is the stability of our monetary policy, retaining a firm standing in the global currency market despite the economic downturn that has gripped all of us these past few years. Whatever option Iceland decides to go with, we should expect it to be something that is compatible with their economy to maximize efficiency.

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