Reykjavík is the capital and largest city of Iceland. It is located in southwestern Iceland, on the southern shore of Faxa Bay. Its latitude is 64°08' N, making it the world's northernmost capital of a sovereign state. 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 centre of commerce, population, and governmental activities. It is among the cleanest, greenest, and safest cities in the world.