Reykjavik

Reykjavík is the capital and largest city of Iceland. Its latitude at 64°08' N makes it the world's most northern national capital. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay. It is the heart of Iceland's economic and governmental activity.

Reykjavík is believed to be the location of the first permanent settlement in Iceland, which Ingólfur Arnarson is said to have established around 870. Until the 18th century, there was no urban development in the city location. The city was founded in 1786 as an official trading town and grew steadily over the next decades, as it transformed into a regional and later national center of commerce, population and governmental activities.