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https://partner.steamgames.com/doc/store/pricing/currencies
https://steamcommunity.com/discussions/forum/1/2765630416825618502/
In which case Steam defaults to Euro or Dollar depending on the region.
Nothing you can do but hoping they will someday implement your currency in Steam.
There are quiet a few countries missing their own local currency.
Steam takes into account various factors before they support local currencies
Iceland isn't as clear but that may just be a case of the size of the market there being considered too small to rush to create its own currency settings for.