I am travelling to Iceland. In view of the recent bank crisis, what is the best way to pay local expenses

I am travelling to Iceland. In view of the recent bank crisis, what is the best way to pay local expenses?
Which credit cards do still work? Does anyone have any idea on the applied exchange rate (note that the commonly listed exchange rates are out of date)? Can you change EUR or USD notes in the streets?
Other - Europe - 2 Answers
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It's still best to use credit cards or take money out of ATM machines. Or you can exchange at any bank or currency exchange. The exchange rate changes from day to day - ask at one of the banks to find out that day's rates