Iceland

E

Currency and Banking

The monetary unit of Iceland is the króna, consisting of 100 aurar (63 krónur equal U.S. $1; 2005). Currency is issued by the state-owned Central Bank (1961).

F

Foreign Trade

The yearly value of Iceland’s imports is often greater than that of its exports, although the country’s foreign trade balances occasionally. In 2004 imports cost $3.6 billion, and exports earned $2.8 billion. Major imports include refined petroleum, machinery, transportation equipment, textiles and clothing, chemicals, basic manufactures, and foodstuffs. Exports of metal and ores, including a significant amount of aluminum, account for 19 percent of total exports. The country’s main trade partners are the United Kingdom, the United States, Germany, Denmark, the Netherlands, Sweden, France, Norway, and Japan.

G

Transportation and Communications

Iceland has 12,988 km (8,070 mi) of roads. Most roads are located in coastal areas. The island has no railroads or navigable rivers. The country has several seaports, including Arkanes, Keflavík, Reykjavík, and Siglufjörður. Icelandair, the national airline, provides domestic and international air service, and is one of Iceland’s largest employers.

There are three daily newspapers published in Iceland, with a combined circulation of about 100,000. They are Frettabladid, Morgunbladid, and DV. Telephone and telegraph services are owned and administered by the government; the state monopoly on radio and television broadcasting ended in 1986. Public television and radio broadcasting networks are operated by the Icelandic National Broadcasting Service.

---

---

V

Government

Iceland is governed under a constitution that became effective when the country achieved full independence from Denmark in 1944. Iceland has no official armed forces of its own except for a small number of coast guard personnel. Iceland is a member of the North Atlantic Treaty Organization (NATO), and it permits the United States to base military forces on the island.

A

Executive

The head of state of Iceland is a president, who is elected by universal suffrage by persons aged 18 and older to a four-year term. The president has little formal power. The country’s chief executive is a prime minister, who is responsible to the parliament. The prime minister, assisted by a cabinet of ministers, holds real executive power.

	More from Encarta
	•  7 tips for funding an online degree •  How to succeed in the fashion industry without being a top designer •  Presidential Myths Quiz •  Coffee break: Recharge your brain