VANCOUVER (NEWS1130) – Pockets in Iceland could one day jingle with the Canadian loonie. There is still talk of the country adopting our dollar and one expert has a couple of unusual arguments in favour of it.

The idea has been tossed around a few times with varying degrees of enthusiasm from Ottawa and Reykjavik. Iceland’s banking system collapsed four years ago, taking the krona along with it; the British pound, the euro and the loonie have all been considered as a replacement.

Investment advisor Larry Short with DWM Securities in Saint John’s, Newfoundland says the Canadian dollar is probably the most solid choice.

“Our reputation around the world these days is somewhat equivalent to what Switzerland was in the 1960s and 70s. We are seen as being very fiscally-prudent,” explains Short.

“We got through the 2008 crisis better than any other country in the world and our level of debt is a lot less than what Europe is currently dealing with,” he argues. “In the beauty pageant list, we are definitely in the top three.”

But he points out Iceland and Newfoundland also both have Viking heritage pre-dating Columbus by hundreds of years.

“Yeah! The Vikings came over here and landed at L’Anse Aux Meadows back in the 10th century… and then they left and went back. The re-emergence of the Vikings would be nice to see here.”

Monetary policy and Vikings: Together at last! However, Short points out there is more recent history as well.

“It wasn’t all that long ago there were charter flights from Iceland to Newfoundland for Christmas shopping and there were a number of fishing companies here that were financed by banks out of Iceland,” he tells us.

“It’s a lot easier to transact business one way or the other if your sharing the same currency. It may enhance trade between Atlantic Canada and Iceland,” he suggests.

Short believes there is no downside for Canada if Iceland adopts the loonie but, regardless of which currency it adopts, Iceland would surrender the ability to change interest rates independent of the host country.

“So, I think we should welcome back the Vikings as having a right to reach across the ocean to the new world. It is literally allowing Iceland to turn over a new leaf. Maybe a Leif Ericson.”