Bryan Woo’s Blog: https://blogs.ubc.ca/bryanwoo/2012/09/25/icelands-attitude-towards-the-loonie-gets-icy/
After reading the article commented by Bryan, and analyzed his thoughts about the articles I must say that Bryan does make a point in why the Loonie currency would not be a viable option for Iceland. As discussed in the articles reports informing potential adoption of other currencies such as the euro or the british pound where released. Speculation about an appreciation in the Canadian dollar is rumored, yet Iceland’s currency has been holding a higher exchange rate than the U.S dollar for quite some time. Now, when considering which other currency could be adopted , the euro is yet to unstable and in financial crisis. However, the pound may be a good option to consider if Iceland does decide to change its monetary policies. On the other hand, the most viable option in my would most probably be going the Nordic currency since these are considered nordic countries and share similar features geographically and socially. Yet, I do believe that Iceland will keep its current currency, the Króna. In addition, Iceland and Canada do not have vast trade relationship with a different business cycle making it hard for Iceland to adapt.
Image source: http://learnthat.com/files/2010/02/exchange-currency1.jpg
