Iceland and Norway Monetary Union Considered

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Iceland and Norway Monetary Union Considered

Minister of Finance Steingrímur J. Sigfússon is interested in pegging the
Icelandic króna to the Norwegian króna and intends to thoroughly explore the
option, saying that the currency question is an important project for
Iceland’s future.

“I believe it is an option that we should look into, in the same way as other
options, when we report on the opportunities Iceland has,” Sigfússon told
Fréttabladid. “We must review all possibilities and this is certainly one of
them.”

However, Minister of Business Affairs Gylfi Magnússon has said that he finds a
monetary union with Norway an unlikely future solution for Iceland and that
cooperation between the countries wouldn’t necessarily mean that Iceland would
adopt the Norwegian króna.

“It is very healthy to have discussions with Norway to see what our options
are,” Magnússon concluded.

Norway’s Minister of Finance Kristin Halvorsen is expected to come to Iceland
next weekend during the ten year anniversary of the Left-Green Movement, of
which Sigfússon is chairman.

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