Iceland - Official exchange rate (LCU per US$, period average)

The value for Official exchange rate (LCU per US$, period average) in Iceland was 126.99 as of 2021. As the graph below shows, over the past 61 years this indicator reached a maximum value of 135.42 in 2020 and a minimum value of 0.36 in 1960.

Definition: Official exchange rate refers to the exchange rate determined by national authorities or to the rate determined in the legally sanctioned exchange market. It is calculated as an annual average based on monthly averages (local currency units relative to the U.S. dollar).

Source: International Monetary Fund, International Financial Statistics.

See also:

Year Value
1960 0.36
1961 0.40
1962 0.43
1963 0.43
1964 0.43
1965 0.43
1966 0.43
1967 0.44
1968 0.62
1969 0.88
1970 0.88
1971 0.88
1972 0.88
1973 0.90
1974 1.00
1975 1.54
1976 1.82
1977 1.99
1978 2.71
1979 3.53
1980 4.80
1981 7.22
1982 12.35
1983 24.84
1984 31.69
1985 41.51
1986 41.10
1987 38.68
1988 43.01
1989 57.04
1990 58.28
1991 59.00
1992 57.55
1993 67.60
1994 69.94
1995 64.69
1996 66.50
1997 70.90
1998 70.96
1999 72.34
2000 78.62
2001 97.42
2002 91.66
2003 76.71
2004 70.19
2005 62.98
2006 70.18
2007 64.06
2008 87.95
2009 123.64
2010 122.24
2011 115.95
2012 125.08
2013 122.18
2014 116.77
2015 131.92
2016 120.81
2017 106.84
2018 108.30
2019 122.61
2020 135.42
2021 126.99

Development Relevance: In a market-based economy, household, producer, and government choices about resource allocation are influenced by relative prices, including the real exchange rate, real wages, real interest rates, and other prices in the economy. Relative prices also largely reflect these agents' choices. Thus relative prices convey vital information about the interaction of economic agents in an economy and with the rest of the world.

Limitations and Exceptions: Official or market exchange rates are often used to convert economic statistics in local currencies to a common currency in order to make comparisons across countries. Since market rates reflect at best the relative prices of tradable goods, the volume of goods and services that a U.S. dollar buys in the United States may not correspond to what a U.S. dollar converted to another country's currency at the official exchange rate would buy in that country, particularly when nontradable goods and services account for a significant share of a country's output. An alternative exchange rate - the purchasing power parity (PPP) conversion factor - is preferred because it reflects differences in price levels for both tradable and nontradable goods and services and therefore provides a more meaningful comparison of real output.

Statistical Concept and Methodology: The exchange rate is the price of one currency in terms of another. Official exchange rates and exchange rate arrangements are established by governments. Other exchange rates recognized by governments include market rates, which are determined largely by legal market forces, and for countries with multiple exchange arrangements, principal rates, secondary rates, and tertiary rates.

Periodicity: Annual

Classification

Topic: Financial Sector Indicators

Sub-Topic: Exchange rates & prices