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Is Cold Hard Cash Getting a New Meaning?

Iceland with Háteigskirkja Lutheran Church and mount Esja in distance.
Andrew Holt | Getty Images
Iceland with Háteigskirkja Lutheran Church and mount Esja in distance.

Support is growing for Iceland to adopt the currency of the Great White North.

The Icelandic krona has been a tough currency to love for a while now. After rising almost 90 percent before the financial crisis, it then crashed, and Iceland required a bailout from the International Monetary Fund.

Not surprisingly, Icelandic politicians have been pressing to join the European Union, which would enable the country to tie the krona to the euro and theoretically avoid the wild currency swings that have bedeviled the tiny country.

But for the moment, the euro may be winning the ugly contest in Iceland.

According to a recent Capacent Gallup poll, a majority of Icelanders are opposed to joining the EU, and there appears to be growing support for Iceland to link its currency to...the Canadian dollar.

Canada's ambassador to Iceland said in an interview that his country would be open to discussing the krona question, provided Iceland had no input into Canadian monetary policy - but then a speech he was to give in Reykjavik was abruptly cancelled.

Still, think about it. Both countries have big fishing industries, and both - um - are cold. Makes perfect sense.

Stay tuned.

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