Iceland Canadian Dollar: Johanna Sigurdardottir, Icelandic Prime Minister, Keeps Loonie Option Open
Icelandic Prime Minister Johanna Sigurdardottir during Iceland's general elections, April, 2009. Faced with popular discontent over her country’s talks to join the European Union, Iceland’s prime minister appears to have opened the door to the island nation’s adoption of the Canadian dollar as an alternative. (Photo: OLIVIER MORIN/AFP/Getty Images)
The Huffington Post CanadaDaniel Tencer
First Posted: 03/12/2012 10:52 amUpdated: 03/12/2012 10:53 am
Faced with popular discontent over her country’s talks to join the European Union, Iceland’s prime minister appears to have opened the door to the island nation’s adoption of the Canadian dollar as an alternative.
That is the clearest sign yet that Iceland’s government may be open to ideas other than joining the EU, and taking seriously public opinion polls showing a majority of Icelanders oppose the EU, while many support the idea Iceland should unilaterally adopt the Canadian dollar.
A recent poll found that more than 56 per cent of Icelanders oppose EU accession in the wake of the debt crises that have rocked Greece and other eurozone members. Although entry into the EU does not necessarily mean joining the euro, in practicality most countries are expected to join the common currency.
A consensus is developing among Icelanders that their currency -- which lost about 60 per cent of its value in the wake of a devastating financial crisis that hit the country in 2008 -- needs to be replaced.
Thus far, the Social Democratic Alliance-led government had indicated that it would pursue EU negotiations to that end, while the opposition Progressive Party had proposed adopting the loonie. Sigurdardottir’s comments Saturday suggested the government may also be open to adopting the Canadian currency.
And it’s unclear how committed supporters of the idea really are. The Economist reports that Sigmundur Gunnlaugsson, leader of the opposition party championing the loonie idea, suggested that support for the proposal was a ploy meant to get Iceland’s government to consider ideas other than joining the euro.
Some economists have questioned whether Iceland adopting the loonie would be good for Iceland -- or Canada.
"The government of Iceland would presumably be issuing Loonie bonds. Given the recent experience of the Eurozone, governments borrowing in a foreign currency -- which they cannot themselves print -- does not look like a very stable arrangement," economist Nick Rowe blogged. "If the Eurozone has very weak fiscal relations, those between Iceland and Canada are non-existent. Would Canada be expected to play Germany to Iceland's Greece?"
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The New $5 Bill
Source: <a href="http://www.flickr.com/photos/bankofcanada/8693039417/sizes/c/in/photostream/" target="_blank">Bank Of Canada, Flickr</a>
The New $5 Bill
From <a href="http://www.flickr.com/photos/bankofcanada/8694157272/in/photostream" target="_blank">Bank Of Canada, Flickr</a>: "Robotics innovation is Canada’s ongoing contribution to the international space program and demonstrates our commitment to space exploration. The Canadian-built Mobile Servicing System is the sophisticated robotics suite that helped to assemble the International Space Station in orbit. This system consists of Canadarm2, Dextre and the Mobile Base.
On board the space station—a permanent orbiting research laboratory—international partners conduct scientific experiments, many of which result in an enhanced quality of life on earth. Canada’s contribution to the space program evokes pride and sparks the imagination and curiosity of our future leaders in science and technology."
The New $10 Bill
Source: <a href="http://www.flickr.com/photos/bankofcanada/8693039429/sizes/c/in/photostream/" target="_blank">Bank Of Canada, Flickr</a>
The New $10 Bill
From <a href="http://www.flickr.com/photos/bankofcanada/8693039423/in/photostream" target="_blank">Bank Of Canada, Flickr</a>: "The expansion of the railway in the 1880s was hailed as a remarkable feat of engineering for a young country with a varied and often treacherous terrain. At the time, the railway was the longest ever built, and its completion demonstrated Canada’s pioneering spirit by linking our eastern and western frontiers, connecting people, and facilitating the exchange of goods.
Today, The Canadian train, winding its way through the Rockies showcases Canada’s natural beauty and symbolizes what we accomplished as a young nation."
The New $5 And $10 Bills
Bank of Canada governor Mark Carney unveils the new polymer $5 and $10 bank notes during a press conference at the Bank of Canada in Ottawa on Tuesday, April 30, 2013.
The New $5 And $10 Bills
Finance Minister Jim Flaherty unveils the new polymer $5 and $10 bank notes during a press conference at the Bank of Canada in Ottawa on Tuesday, April 30, 2013.
The New $10 Bill
A new polymer $10 bank note is displayed during a press conference at the Bank of Canada in Ottawa on Tuesday, April 30, 2013.
Astronaut Chris Hadfield Displays The New $5 Bill
Astronaut Chris Hadfield poses for a photo with a new polymer $5 bank note on Tuesday, April 30, 2013.
Twitter reaction to plastic money
Twitter reaction to plastic money
Twitter reaction to plastic money
Twitter reaction to plastic money
Twitter reaction to plastic money
Joel Klebanoff
New $5 and $10 bills are being launched. All of our bills are going plastic. Why does that bring the film The Graduate to my mind?
Andrew Coyne
Even that would be better. @InklessPW: Wells designs new bills. What'll we put on the 5? Oscar Peterson. The 10? Peterson. 20? Glenn Gould
Cory S.
Wait so there's no more quote from the Hockey Sweater on the new $5 bills? #manifencours
Tabatha Southey
New bills should be 5 pin bowling for the $5, a Robertson screwdriver for the $10, a Canadian flag, draped over a picnic bench on the backs.
LauraBeaulneStuebing
Theory about the new $5 and $10 bills: They're ugly enough that we don't want to keep them in our wallets.
Paul Wells
Paul Wells designs the new bills. "What'll we put on the 5?" "Oscar Peterson." "And on the 10?" "Oscar Peterson." "20?" "Glenn Gould."
Wesley Fok
Was expecting the new $5/$10 bills to literally have pictures of poop on them, based on the outcry. Surprise: they look like money!
Patrick Meehan
Q: You're the federal government, what do you put on the new 5$ and 10$ bills? A: Things you've cut funding to. http://t.co/jqT3BLmENc
Jason Rehel
Everyone is pretty damn hung up on the AESTHETICS of the new $5 and $10 bills in Canada. Me? I'd like money that WORKS in vending machines
Brittlestar
@Cmdr_Hadfield Dude, with all the stuff you’ve had up there (guitars, Easter eggs, new $5 bills), how BIG was your suitcase?
The New $20 Bill
Hand holding up the new polymer Canadian $20.00 bill.
The New $20 Bill
Some new polymer twenty dollar bills, which is the most widely used bank note in the country, are pictured at Montreal on November 19, 2012.
The New $20 Bill
The Bank of Canada introduced the plastic see-through $20 bill on May 2, 2012.
The New $50 Bill
Bank of Canada Governor Mark Carney holds a new $50 bill while standing in front of the Canadian Coast guard ship Amundsen Monday, March 26, 2012 in Quebec City. The Amundsen is displayed on the back of the new bank note made of polymer.
The New $100 Bill
Bank of Canada Mark Carney shows off the bank's new circulating $100 bill, Canada's first polymer bank note, in Toronto on Monday Nov. 14, 2011.
The New $100 Bill
The $100 bill was the first of Canada's paper denominations to go plastic and see-through.
Australia's polymer note
An Australian 100 dollar polymer note is displayed above various international currencies. AFP PHOTO / Torsten BLACKWOOD
Australia's polymer note
AFP PHOTO / Torsten BLACKWOOD
Mexico's polymer note
A Mexican pesos note made out of polymer material. Alfredo Estrella/AFP/Getty Images
Mexico's polymer note
Mexico City, MEXICO: A sample of the new 50 Mexican pesos' note made out of polymer material to hinder its forgery, 14 November, 2004 in Mexico City. AFP PHOTO/Alfredo ESTRELLA (Photo credit should read ALFREDO ESTRELLA/AFP/Getty Images)
Faced with popular discontent over her country’s talks to join the European Union, Iceland’s prime minister appears to have opened the door to the island nation’s adoption of the Canadian dollar...
Faced with popular discontent over her country’s talks to join the European Union, Iceland’s prime minister appears to have opened the door to the island nation’s adoption of the Canadian dollar...
I was a bit nervous placing Eldhús at the end of an old dock in Stokkseyri. When I was 12 years old working on a farm one Summer I learned how to drive a tractor backwards with a trailer full of hay.
Why dont you take another hit off your crack pipe, Iceland a rogue whaling nation?Do you say the same about the Inuit people?remeber everything you eat has to be killed....even vegetables!
IRBundy: Why dont you take another hit off your crack pipe,
A good thing for who? Greece's inability to devalue their currency isn't exactly working out for Greece. Adopting a gold standard means less monetary sovereignty, it's like everyone adopting the Euro. Currency production would be inextricably linked to a country's ability to mine or purchase gold and that's not a superior metric. So either a lot of countries would go bankrupt or eventually we'd go back to relying on the international monetary fund to set fixed exchange rates. And at that point folks like yourself would likely start arguing that the free market, and not a world government, is best suited to value or devalue a currency.
Filthy: A good thing for who? Greece's inability to devalue their
So you're ready for the next round of US Quantitative Easement are you? Does printing up an extra trillion here and there solve any problems? Iceland is the only country in the world that hunted down their misbehaving bankers and threw them into prison. And what's happened to Iceland's bond issues since then? Oh they've all sold out! (hand *slaps* forehead)
dongarb: So you're ready for the next round of US Quantitative
I had a most enjoyable visit to Iceland last year.
Make no mistake, this is a progressive and capable country.
But when you're that small, you're especially susceptible to the whims and turbulence of the much larger world economy.
Scoville_Scale: I had a most enjoyable visit to Iceland last year.
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The Huffington Post Canada Daniel Tencer First Posted: 03/12/2012 10:52 am Updated: 03/12/2012 10:53 am