https://blogs.ubc.ca/bryanwoo/2012/09/25/icelands-attitude-towards-the-loonie-gets-icy/
I have to disagree with Bryan, I don’t think most people would find the Canadian dollar to be a “sound and viable option” when it comes to currency substitution. I almost find it odd that Iceland’s central bank would consider the Canadian dollar as their national currency. While the Canadian dollar may be financially stable, Canada’s economy has very little interaction with the Icelandic economy. Iceland would be far better off joining the Eurozone, whose currency is backed by the European Central Bank. The stability of the euro would help eradicate the financial instability associated with the current Icelandic currency.
The referenced article also goes on to mention that there is currently a bull market for the Canadian dollar, and that many investors are betting that it will continue to grow in the future. While this may present potential profit for Iceland, they should be careful and realise that the Canadian dollar belongs to a relatively small economy and can be easily affected by other currencies in the marketplace. All of these reasons lead me to believe that Iceland is right in saying no to the Canadian dollar, and that they should look for a stronger substitute.
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