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*T*
11-03-08, 06:05 AM
I am planning to visit our Icelandic neighbours quite soon. I have always wanted to go and it will prbably never be this cheap again. As itulipers know Iceland is an interesting case study in Poom and currency controls.
I am unable to get ISK to take in the country. I have to take GBP or USD into Iceland and change it there at the local official rate (somewhat different from the offshore rate).

If there is anything you want to know, ask here and I will start a new thread with my observations on my return.

Official Currency Controls (http://www.vi.is/files/2067166182Currency%20restrictions.pdf)

metalman
11-03-08, 07:44 AM
I am planning to visit our Icelandic neighbours quite soon. I have always wanted to go and it will prbably never be this cheap again. As itulipers know Iceland is an interesting case study in Poom and currency controls.
I am unable to get ISK to take in the country. I have to take GBP or USD into Iceland and change it there at the local official rate (somewhat different from the offshore rate).

If there is anything you want to know, ask here and I will start a new thread with my observations on my return.

Official Currency Controls (http://www.vi.is/files/2067166182Currency%20restrictions.pdf)

cool! thanks for doing this.

best msm story ever on an econ crisis...


(http://www.bloomberg.com/apps/news?pid=20601109&sid=aVFtDRGwcc50&refer=home) Icelandic Shoppers Splurge as Currency Woes Reduce Food Imports (http://www.bloomberg.com/apps/news?pid=20601109&sid=aVFtDRGwcc50&refer=home)

Oct. 13 (Bloomberg) -- After a four-year (http://www.bloomberg.com/apps/quote?ticker=ICGOYOY%3AIND) spending spree, Icelanders are flooding the supermarkets one last time, stocking up on food as the collapse of the banking system threatens to cut the island off from imports.

``We have had crazy days for a week now,'' said Johannes Smari Oluffsson, manager of the Bonus discount grocery store in Reykjavik's main shopping center. ``Sales have doubled.''

Bonus (http://www.nat.is/Auglysingar/bonus_store_iceland.htm), a nationwide chain, has stock at its warehouse for about two weeks. After that, the shelves will start emptying unless it can get access to foreign currency, the 22-year-old manager said, standing in a walk-in fridge filled with meat products, among the few goods on sale produced locally.

leave it to the msm to cover panic buying by citizens before their currency collapses as a 'splurge' of shopping. ha!

'hey, everyone did you hear? there's a big national sale on! buy now before the price of everything doubles or triples! whee. let's go!!!!'

that's how it'll get pitched to americans when it happens.

grapejelly
11-03-08, 08:04 AM
wow, I am very interested in following your travels. My trip to Argentina in 2002 taught me a great deal...

D-Mack
11-03-08, 08:25 AM
Where can I find the official rate?

The ECB still lists 305 for a period of nearly a month

http://www.ecb.int/stats/exchange/eurofxref/html/eurofxref-graph-isk.en.html

*T*
11-03-08, 06:08 PM
bank of iceland website (http://www.sedlabanki.is/?PageID=287&NewsID=463) - I have been unable to get ISK... anyone know where I could get that rate?

Shakespear
11-04-08, 12:17 PM
I tried to send my cousin some Euros today and the bank warned me that the wire transfer may not reach her.

Question: Would Gordon Brown know where it went?

quigleydoor
11-04-08, 01:01 PM
At a Whole Foods in Massachusetts on Sunday, the butcher was selling Icelandic lamb. Never seen that before. I picked up a brochure about how the cute little guys run and play on the grassy Icelandic hills before being hand selected for "meat production".

On the back was a surprising promotion for a $599 weekend getaway to Iceland, including 2 nights and a dinner at a fancy restaurant. That sounds too good to be true.

I checked the the Iceland Air website just now and found a similar offer (sans dinner) for $799.

D-Mack
11-04-08, 01:50 PM
Where can I find the official rate?

The ECB still lists 305 for a period of nearly a month

http://www.ecb.int/stats/exchange/eurofxref/html/eurofxref-graph-isk.en.html



The Icelandic krona traded for the first time in a week, but dealers said it was changing hands at roughly 240 to the euro compared with the rate of 152 to the euro fixed by the central bank.
http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/3275375/Investors-shun-Greek-debt-as-shipping-crisis-deepens.html

ocelotl
11-04-08, 09:13 PM
Just as a comparison and reference, this last October I had to go to Guatemala and Costa Rica for field surveys, and did not dare to bring mexican pesos with me. I changed to USD on the Airport on my way out.

I handed out pesos as tips, but not for more. Seeing that both of the factors that threw down our currency (unwind of carry trade and dwindling of remittances) have changed, as seen by the lack of bidders on the USD auctions of the past days, makes me think we are entering to the rising part of the U in the MXN rate in USD, but things can still change, at least we have to take into account the way the mutual trade has been evolving lately and the way market is seeing the late law modifications.

Still am not seeing '94-5 like changes in prices, but they are growing faster than in the last 4-5 years. While nobody begins shooting price increases indiscriminately, things can stay calm.

Andreuccio
11-05-08, 10:12 AM
bank of iceland website (http://www.sedlabanki.is/?PageID=287&NewsID=463) - I have been unable to get ISK... anyone know where I could get that rate?

I traveled through Brazil in the late '80s. There was an official peg to the dollar, but you could get substantially more on the gray market. I don't remember the spread, but it was a lot. Trading was easy, as well. There were always people around willing to exchange: shopkeepers, fellow travelers, etc. No real risk of consequences, from what I could tell, either.

I don't have any idea if that's the case in Iceland, but it might be worth holding off on major exchanges until you get a handle on the situation.