Convert your Iceland Currency to Naira
Nigeria vs. Iceland Economic Indicators
| Indicator | Nigeria | Iceland |
|---|---|---|
| Interest Rates | 26.25% (May 2024) | 9.25% (Jul 2024) |
| Exchange Rates | NGN 1490/$ | ISK 138/$ (Icelandic Krona) |
| Inflation Rate | 33.95% | 6.3% (Jul 2024) |
| Unemployment Rate | 5% (2024) | 3.2% (Jul 2024) |
| GDP Growth Rate | 2.85% | 4.3% (2022) |
| Savings Rate | 6.28% | 6.0% (2021) |
Discussion:
- Interest Rates: Nigeria has a significantly higher interest rate, likely due to factors like controlling inflation or attracting foreign investment.
- Exchange Rates: The Nigerian Naira (NGN) is much weaker than the Icelandic Krona (ISK). This makes Nigerian exports cheaper but imports from Iceland more expensive.
- Inflation Rate: Nigeria has a higher inflation rate, indicating a less stable price environment.
- Unemployment Rate: Iceland has a much lower unemployment rate.
- GDP Growth Rate: Iceland has had a higher GDP growth rate in recent years. However, Nigeria’s economy is much larger.
- Savings Rate: Nigerians have a higher savings rate than Icelanders.
The Evolution of Icelandic Krona
Iceland introduced the Krona (ISK) in 1874, replacing the Danish currency. The nation began printing its own banknotes in 1885. After gaining independence from Denmark in 1918, Iceland separated the Krona from the Danish Krone and devalued it by 23%.
Subsequently, Iceland pegged the Krona to the British pound from 1925 to 1939, then to the US dollar until 1949. To combat high inflation in 1981, Iceland revalued the Krona, reducing its value by 99%. In 2013, the country introduced its largest denomination banknote, the 10,000 Krona bill. Today, the Krona remains Iceland’s official currency.
Related Currency Pairings
African Currencies
Asians Currencies
The Evolution of the Icelandic Króna
The Icelandic króna (ISK) has been the national currency of Iceland since 1918, replacing the Danish krone. Its history reflects the country’s economic development and political challenges.
Early Years and Currency Union: Before independence, Iceland used the Danish krone. After gaining independence, Iceland introduced its own currency, the króna. However, the króna remained pegged to the Danish krone until 1931.
Economic Challenges and Currency Volatility: Iceland has faced a number of economic challenges throughout its history, including volcanic eruptions, financial crises, and fluctuations in the tourism industry. These factors have put pressure on the króna and contributed to its volatility.
Currency Reforms and Floating Exchange Rate: In 1931, Iceland abandoned the fixed exchange rate with the Danish krone and allowed the króna to float freely on the foreign exchange market. This move gave the country greater flexibility in managing its monetary policy.
Financial Crisis and Devaluation: In 2008, Iceland experienced a severe financial crisis, which led to a significant devaluation of the króna. The government implemented a series of economic reforms to stabilize the currency and restore confidence in the Icelandic economy.
Recent Developments: In recent years, Iceland has recovered from the financial crisis and experienced economic growth, driven by tourism, fisheries, and renewable energy. The króna has appreciated against the US dollar, reflecting the country’s strong economic performance. However, Iceland remains vulnerable to external shocks, such as volcanic eruptions and fluctuations in the global economy.
Sources:
World Bank
Central Bank of Nigeria
Trading Economics
Central Bank of