Iceland is an expensive destination. However, some luxury items are actually cheaper than in other large international cities, especially after tax refunds.
Some sample prices are: a cup of coffee, IKr 290; imported German beer or Icelandic brew, IKr 600; can of soda, IKr 150; film, IKr 1,200 for 36 exposures; short taxi ride within Reykjavík, IKr 800.
The unit of currency in Iceland is the króna; plural krónur (IKr). Icelandic notes come in denominations of IKr 500, 1,000, 2,000, and 5,000. Coins are IKr 1, 5, 10, 50, and 100. In summer 2005 the rate of exchange was IKr 63 to the U.S. dollar, IKr 53 to the Canadian dollar, IKr 114 to the pound sterling, IKr to the euro, IKr 48 to the Australian dollar, IKr 44 to the New Zealand dollar, and IKr 10 to the South African rand. No limitations apply to the import and export of currency.
Don't bother trying to exchange currency before you depart, because Icelandic money is usually unavailable at foreign banks, and sometimes when it is, you'll get old banknotes, no longer accepted in Iceland. It is also highly unlikely that Icelandic money will be exchangeable back home, so exchange any last krónur at the departure terminal in Keflavík Airport.