Seðlabanki Íslands, or the Central Bank of Iceland, is the primary financial institution in Iceland. Established in 1961, its main responsibilities include issuing the national currency, the Icelandic króna, and maintaining monetary stability. The bank also oversees the country's financial system and implements monetary policy to promote economic stability. The central bank plays a crucial role in regulating inflation and managing foreign exchange reserves. It works to ensure a stable banking environment and supports the government in economic planning. Additionally, Seðlabanki Íslands conducts research and provides economic data to inform public policy and financial decisions.