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Reykjavík (Icelandic pronunciation: [ˈreiːcaviːk]) is the capital and largest city of Iceland. Its latitude at 64°08' N makes it the world's northernmost capital of a sovereign state. It is located in southwestern Iceland, on the southern shore of Faxaflói Bay. With a population of around 120,000 (and over 200,000 in the Greater Reykjavík Area) it is the heart of Iceland's economic and governmental activity.