Iceland wants the loonie, Canada is not saying no -

Iceland wants the loonie, Canada is not saying no


Canada’s ambassador to Iceland Alan Bones will announce tomorrow that Canada is ready to discuss Iceland’s potential adoption of the loonie as its currency, The Globe and Mail reports:

Iceland, still reeling from the aftershocks of the devastating collapse of its banks in 2008, is looking longingly to the loonie as the salvation from wild economic gyrations and suffocating capital controls.

(…) A group of prominent Icelandic business leaders approached Mr. Bones last year about the idea. And his speech Saturday, to a meeting of the opposition Progressive Party, marks Canada’s first public response.

While Iceland would seem to have many reasons to adopt the loonie and ditch the volatile krona, Canada could also benefit. As both the Globe article and this piece by Canadian Business point out, part of the reason Canada might be open to talks with Iceland is because their adoption of the loonie would create a partnership with an Arctic nation. From Canadian Business:

The strangest reason for adopting the loonie is Arctic sovereignty. There are eight countries in the Arctic Council, including Canada and Iceland. A common currency could help Canada gain clout in the council, the group argues, and it could gain even more if Greenland comes on board, which they recommend. 

Plus, let’s face it, we’re flattered by the attention.

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Iceland wants the loonie, Canada is not saying no

  1. Huh. Iceland, Greenland, Turks & Caicos

    Could Canada become the first nation to become an empire through other places voluntarily joining up?

    • How many empires were actually bigger than Canada is now?  Some, to be sure, but not many.  

      Would it not just be an expanded federation?  The empire part usually comes latter, after the decadent democracy stage.  Er… empire it is, then. 

      • We’re not talking about Iceland joined our federation, just using our currency. They could do it unilaterally–not much we could do to stop them.

        • I was riffing on Thwim’s post, not speculating on Iceland joining the Canadian federation.  Just a little fun and games. 

        • yeah, but, lets have them join canada too while they’re at it. would be awesome!

  2. Would we be able to influence Iceland’s barbaric ‘scientific’ whaling policy in exchange.

    • Probably by showing them how we “scientifically” control the seal population… 

      • Hey, everyone, we have a very nice club.  Wouldn’t you like to join us?

  3. I see a bad case of “They like us.  They really like us.” coming on.  Just calm down Canada.  

    • But they like us, they really do like us!

  4. Is Iceland prepared to adopt Canada’s economic policies and banking practices? It is far more likely that Canada will get pulled into further financial problems and join Iceland in its “wild economic gyrpations” than Canada pulling Iceland out unless they actually surrender some of their independance. I would have thought the EU would be a case-in-point warning against allying your economy with a country that doesn’t share your economic vision.

    •  They’d have zero say on interest rates or any other Bank of Canada decision for that matter, so it’s no skin of our backs. Their whole country has under 320 000 people– it’d be like adding a London, ON to our circulation.

    • Mitch: Of course your opinion won’t be accepted by the Left because it’s called common sense!

      • That’s a rather gratuitous swipe, based on nothing at all. Who are “the Left”, anyway? Anyone who disagrees with you?

  5. Iceland has also recently applied to join the EU, and go with the Euro so I wouldn’t get too excited.

  6. so what the United States does not want the Loonie

  7. This is great news. First they adopt our currency and then they will eventually join the Confederation. And when Iceland joins confederation it will only be a matter of time before Greenland does too. Muhahahahaha.

    But seriously, no one expects them to join Confederation. The biggest benefit Canada will see is in its arctic sovereignty (which is great news). Also Canadian global increase will have a slight increase.

  8. I’m in favour of an eleventh province.

  9. With a population a little above that of P.E.I.?  Wake me when a significant place wants to join up.

  10. First we take Iceland and then we take Alaska! 

  11. Saint-Pierre and Miquelon, be very, very afraid. You’re next. Canada’s hegemony in the north Atlantic knows no limits. Your new national anthem will be the Looney Tune!

  12. If they take on the Canadian dollar, would they be aloud to change the design the way you see done with the Euro? If so, I want some cool Icelandic dollars!

  13. We must re-christen it. Call it the Canmark or the Arcto.

  14. Canada mints lots of the worlds coin currency, not just our own, I think an Icelandic styled Loonie would be a natural for us, hey we do Loonies for breast cancer awareness and for historic things like Rememberence Day with ease. We are master coin makers!

  15. Back off Iceland; you really don’t need these craven, nasty little men anywhere near you. You have a reputation to protect. Stay away.