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Tuesday, 6 March 2012

Icelanders consider replacing krona with Canadian dollar

Some Icelandic business leaders have proposed that Iceland adopt the Canadian dollar as their national currency, to improve stability and ease capital flows.  It is significant that the proposal was not to adopt the US dollar, which has traditionally been the global reserve currency, but whose status is now diminished.

Seven out of ten Icelanders would happily dump their currency according to the Globe and Mail's article.  The Canadian currency more closely matches Iceland's needs, more closely tracking commodities.  It is also significant that the Canadian dollar appears to be favoured over the euro, despite Iceland's 2009 application to join the European Union.

I thank JSMineset for drawing my attention to The Globe and Mail's article "Canadian envoy to Iceland sparks loonie controversy".

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