Money

1. Currency Exchange

The official currency of Iceland is the Icelandic króna. The international abbreviation is ISK and the local abbreviation is kr. Coins are in denominations of 100 kr, 50 kr, 10kr, 5 kr. and 1 kr. Bank notes are in denominations of 5000 kr, 2000 kr, 1000 kr, and 500 kr. All airports, banks and currency exchanges facilitate exchange of major currencies.

US currency is accepted as direct payment in hotels, restaurants and large shops, but would get a low rate of exchange rate. There are some stores that also accept payment in other foreign currencies, but tourists need to enquire about the same in advance. Money can be exchanged at all major cities in banks such as the Landesbankí at Reykjavík airport, which are open 24 hours, and first-class hotels as well. Banks usually provide you with the best exchange rates. They are usually open in weekdays from 9:15am to 4pm. There are over 170 bank branches across Iceland.

You can also avail of exchange services from The Change Group, which has offices at Reykjavík airport, the Tourist Information Center and in central Reykjavík.

Credit cards: The major cards in Iceland are American Express, Diners Club, Europay, MasterCard and Visa. You can check with your credit or debit card company for information of merchant suitability and other services, which may be available. Banks in Iceland will advance cash against main debit and credit cards.

Traveler's checks: Foreign traveler's checks can be exchanged at any bank for a $2.50 fee. Banks will advance cash against traveler's checks. In order to avoid additional exchange rate charges, travelers are advised to take traveler's checks in US Dollars only.

ATM's: ATMs can be found all over the place, for instance outside most banks and in shopping centers as well. Throughout the country, cash is available at every bank branch (over 170) and ATM.

The import and export of local currency is unobstructed. When entering Iceland tourists can carry an unlimited amount of domestic or foreign currency.

2. What A Dollar Will Buy You

Pint of beer $9

Levi Jeans $85

Big Mac meal $11

Music CD $28

Can of Cola $1

Frozen chicken kg $5

Cinema ticket $4

Theatre ticket $4.

Coffee (kg) $35

Electricity 1 kWh $0.11

3. Telecommunications

The international calling code of Iceland is +354 following the seven-digit number you want to connect to. In order to make direct long-distance calls to Europe and the USA, dial 00 dial 00, followed by the country code, the city code and the telephone number.

Iceland is equipped with extremely contemporary and highly consistent telephone system. However, you wont find many telephone booths around the place except the coins and card operated public phones at post offices and telephone exchanges around the country. Phone charges differ when calling within Iceland depending on what time of the day the call has been made.

If you are accommodated in one of the hotels then there is a direct dial option from the room phone that you can avail of. For additional information, call 118 (internal) or 114 (external).

Telefax:

Fax service is also accessible at most post offices around the country. The fax code into Iceland is +354 following the seven-digit number.

Telegrams:

To send telegrams, you are required to dial 146 from either a private or public telephone.

Mobiles:

The Mobile Phone Codes in Iceland mobiles are the series of 388, 398, 399, 62, 82, 84, 85, and 89. There are three GSM operators in Iceland, Iceland Telecom, Islandssimi and TAL. All the three cover most of Iceland, including all towns and villages with over 200 inhabitants each. These three telephone companies all sell pre-paid GSM phone cards and proffer GPRS services. Pre-paid cards can be bought at petrol stations around the country. However, you can also rent GSM phones from Iceland Telecom, Ármúli 27, Reykjavík. NMT is Iceland's long-range mobile service that covers most of Iceland, including the Interior highlands, and is appropriate for those who travel in the rural areas. The NMT too can be rented from Iceland Telecom. Siminn, one of the telecom companies in Iceland, has roaming facility, which is associated with roughly 250 telecommunication companies in approximately 100 countries. Most mobile phones from the US will not work, as Iceland uses the European system. European cell phones work on Iceland's GSM network.

Internet connectivity is available and can be found, especially in Reykjavík. Numerous software is available at Internet centers and cafés allow visitors to make international phone calls.

4. Cab Fares

Taxis prove to be a good option for groups of people who intend to share the fare, which otherwise can be really steep.

Taxi fare to Reykjavík from Leif Ericsson Airport is about $50 during the day and $75 at night. The Cab fare for the four passenger taxi to Reykjavik comes to around USD $100.

5. Currency Exchange Rates

Currency Exchange Rates

ISK 1.00 = USD 0.013 GBP 0.007 CAD 0.015 AUD 0.017 ZAR 0.09 EUR 0.010 NZD 0.021

U.S. Dollar PEN U.S. Dollar PEN

$10 748 $200 14952

$20 1495 $300 22482

$50 3738 $500 37380

$100 7476 $1000 74760

6. Taxes

There is no departure tax levied on the tourists in Iceland. Although, VAT is charged at the rate of 24.5%, the amount is refunded after 3 months, provided if the purchase if above ISK 4000 and refund request is applied for before three months of that purchase at the following address:

Iceland Refund (Tax-Free a Islandi ehf.)

Adalstraeti 2, IS-101 Reykjavik

Tel: (+354) 564-6400

Fax: (+354) 564-3600

E-mail: taxfree@icelandrefund.com

Web: www.eurorefund.com

7. Tipping

Service charges and VAT are always included in the prices in Iceland hence, tipping is not compulsory but well appreciated if given.

However, in case you feel that you have received poor or sub standard service you can always opt to decline to pay the extra service charge levied.

The waiter or server only receives a small portion of the gratuity so you may also pay an extra tip in case you feel you have been served well. Bell hops or porters may be tipped a dollar each for every piece of luggage carried by them. Similarly, tipping taxi drivers also purely depends on your discretion.