Big Mac at pounds 4 too much in Iceland.

ICELAND has been forced to ditch the Big Mac - because the collapse of the currency has made it too expensive.

The country's three McDonald's restaurants - all in capital Reykjavik - will close next weekend because of tumbling profits caused by the plunging value of the krona.

Magnus Ogmundsson, boss of Lyst Hr, McDonald's franchise holder in Iceland, admitted: "The economic situation has just made it too expensive for us."

Costs have doubled over the past year because of the falling krona and high tariffs on imported goods, making it impossible for the firm to put up prices further and remain competitive with rivals using local produce.

Profit A Big Mac in Reykjavik already costs pounds 3.25. But the 20per cent increase needed to make a decent profit would have pushed that to pounds 3.90 - making the Icelandic version of the burger the most expensive in the world.

That title is currently held jointly by Switzerland and Norway, where it costs pounds 3.53, according to The Economist mag's 2009 Big Mac index.

McDonald's, the world's largest chain of hamburger fast food restaurants, arrived in Reykjavik in 1993 . Lyst plans to re-open the stores under a new brand name, Metro, using locally sourced materials and produce and retaining the franchise's 90-strong staff.