The króna (plural: ''krónur'';
sign: kr) is the
currency
A currency, "in circulation", from la, currens, -entis, literally meaning "running" or "traversing" is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins.
A more general ...
of the
Faroe Islands
The Faroe Islands ( ), or simply the Faroes ( fo, Føroyar ; da, Færøerne ), are a North Atlantic island group and an autonomous territory of the Kingdom of Denmark.
They are located north-northwest of Scotland, and about halfway bet ...
. It is issued by
Danmarks Nationalbank, the central bank of
Denmark
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, song_type = National and royal anthem
, image_map = EU-Denmark.svg
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, subdivision_type = Sovereign state
, subdivision_name = Kingdom of Denmark
, establish ...
. It is not a separate currency, but is rather a local issue of banknotes denominated in the
Danish krone, although Danish-issued coins are still used. Consequently, it does not have an
ISO 4217 currency code and instead shares that of the Danish krone, ''DKK''. This means that in the Faroe Islands, credit cards are charged in Danish kroner. The króna is subdivided into 100 ''
oyru(r)''.
History
When German forces
invaded
An invasion is a military offensive in which large numbers of combatants of one geopolitical entity aggressively enter territory owned by another such entity, generally with the objective of either: conquering; liberating or re-establishing con ...
and occupied Denmark on 9 April 1940, the
Danish krone was used in the Faroes. However, all exchange between the Faroes and Denmark halted as a result of
the occupation, leaving one currency to develop in two markets independently of each other. On 31 May 1940, special Faroese banknotes were introduced. They consisted of Danish notes with a special stamp. These notes replaced unstamped Danish at par.
From 14 October 1940, new banknotes were printed "on behalf of the National Bank of Denmark." The value of these new banknotes was the same as those already in use. On 18 December 1940, a Currency Central was established in order to monitor foreign trade and to secure the solvency of the Faroes. Currency Central was headed by a board of nine, the judge, who was chairman, one representative of Faroe Fish Export, one representative of the Faroese Merchants' Union, one representative of the bank Føroya Banki, one representative of the savings bank Føroya Sparikassi and four representatives of the
Løgting
The Løgting (pronounced ; da, Lagtinget) is the unicameral parliament of the Faroe Islands, an autonomous territory within the Danish Realm.
The name literally means "''Law Thing''"—that is, a law assembly—and derives from Old Norse ...
.
On 18 December 1940, the Faroese króna was pegged to the
British pound at a rate of 22.4 krónur = 1 pound. This rate was officially accepted by the British government in a treaty titled "Agreement between His Britannic Majesty's Government and the Administration of the Faroe Islands, for Regulating the Financial Relations between the United Kingdom and the Faroe Islands," which came into force on 27 March 1941. At the same time, the Board of the ''Currency Central'' was reorganised to only three members, one representative of the
British Government, one representative of the State (referring to the
State of Denmark, meaning the County of Faroe), and one representative of the Løgting or the parliamentary National Board. In 1941, coins were struck in
London
London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
for use on the Faroe Islands.
As of 12 April 1949, the Faroese króna was separated from the
pound sterling
Sterling (abbreviation: stg; Other spelling styles, such as STG and Stg, are also seen. ISO code: GBP) is the currency of the United Kingdom and nine of its associated territories. The pound ( sign: £) is the main unit of sterling, and ...
and fixed to the
Danish krone at parity. This arrangement is still in effect. Although Faroese banknotes were issued "on behalf of the National Bank of Denmark," the National Bank of Denmark does not claim any rights to Faroese banknotes issued prior to 1951.
Exchange with the Danish krone
Danish kroner are exchanged to Faroese krónur and vice versa by the
National Bank of Denmark free of charge. While normal Danish bank notes are no longer intended as
legal tender in the Faroes, they are accepted there in all situations. In Denmark proper, existence of the Faroese króna is poorly known, particularly the fact that it is officially the same currency as the Danish krone and that the notes can be exchanged by any Danish bank without charge. Consequently, very few Danish stores will accept Faroese notes. Also, exchange offices in other countries often have problems with them. People travelling from the Faroes are often advised to exchange their cash prior to embarking in order to prevent potential complications arising from this situation.
Coins
The Faroe Islands use standard Danish coinage, but the region has experienced a shortage of small currency on several occasions, leading to non-standard issues.
During the late 19th century, German national C.F. Siemsen, a merchant conducting business in both the Faroe Islands and Iceland, issued his own private coinage. This issue is brass, one side carrying the inscription: CFS and the other side the denomination: 4 or 16 skilling in goods (). Due to a shortage of currency in 1929–33, two merchants issued their own coins as well; J.F. Kjølbro in
Klaksvík
Klaksvík is the second largest town of the Faroe Islands behind Tórshavn. The town is located on Borðoy, which is one of the northernmost islands (the Norðoyar). It is the administrative centre of Klaksvík municipality.
History
The first s ...
and S.P. Petersens Eftf in
Fuglafjørður. The Kjølbro issue is aluminium coins with denominations of 10, 25 and 50 øre, and 1, 2, 5, and 10 kroner. S.P. Petersens Eftf's issue was made of brass in denominations of 5, 10 and 25 øre, and 1, 2 and 5 kroner.
During World War II, the Faroe Islands were separated from Denmark proper due to the occupations by the United Kingdom and Germany respectively. In 1941, a set of coins (1, 2, 5, 10 and 25 øre) was minted in London to alleviate a shortage of small change. This issue was identical to the pre-war Danish coinage already circulating, but is easily identified: the coins minted in London were made of bronze and copper-nickel, while the comparable coins minted in Denmark in 1941 were made of aluminium and zinc (with one exception). In addition, the British made set lacks both the mark of the Royal Danish Mint (a small heart) and the initials of the engraver and the mint master in Copenhagen.
Banknotes
In 1940, Danish 5, 20, 50, 100, and 500 kroner notes were overstamped with ''Kun Gyldig paa Færøerne, Færø Amt, Juni 1940'' (meaning “Only valid on the Faroe Islands, Faroe County, June 1940”) for issue on the Faroe Islands. Later that year, the Færø Amt issued distinct notes in denominations of 1, 5, 10, and 100 kroner. From 1951, notes were issued with texts in
Faroese. The 1 kroner note was not continued, with 50 krónur introduced in 1967, followed by 500 and 1000 krónur in 1978, 20 krónur in 1986 and 200 krónur in 2003. Between 2001 and 2005, a new banknote series with new
security features
Security is protection from, or resilience against, potential harm (or other unwanted coercive change) caused by others, by restraining the freedom of others to act. Beneficiaries (technically referents) of security may be of persons and social ...
was introduced to replace older notes. Denominations are 50, 100, 200, 500, and 1000 krónur. On March 19, 2012, an updated version of the Faroese króna banknotes was released into circulation. The new notes are identical to the current issues, but the new notes now feature "Motion" windowed security threads and perfect registration devices instead of
holographic patches on the fronts, and mother-of-pearl threads, and fluorescent colors added on the back of the notes.
Bank transfers
For international bank transfers including credit card transfers the ISO code has to be given. The Faroese króna has no official
ISO 4217
ISO 4217 is a standard published by the International Organization for Standardization (ISO) that defines alpha codes and numeric codes for the representation of currencies and provides information about the relationships between individual ...
code, so DKK is used for all credit card statements for visitors and international transfers of krónur (unless some other currency is used). Still transfers between Denmark and the Faroe Islands count as international with corresponding fees, and the Faroe Islands have its own
IBAN
IBAN or Iban or Ibán may refer to:
Banking
* International Bank Account Number
Ethnology
* Iban culture
* Iban language
* Iban people
Given name
Cycling
* Iban Iriondo (born 1984)
* Iban Mayo (born 1977)
* Iban Mayoz (born 1981)
Football
* ...
and
BIC codes with ''FO'' in them.
Current exchange rates
Numismatics
Faroese banknotes may be purchased by collectors at face value from
Danmarks Nationalbank.
(
Postverk Føroya, the Faroese postal service now known as 'Posta', used to be the sole supplier of Faroese banknotes to collectors, but does not sell banknotes anymore.)
See also
*
Exchange rate regime
*
British occupation of the Faroe Islands in World War II
The British occupation of the Faroe Islands during World War II, also known as Operation Valentine, was implemented immediately following the German invasion of Denmark and Norway. It was a small component of the roles of Nordic countries i ...
*
Economy of the Faroe Islands
The economy of the Faroe Islands was the 166th largest in the world in 2014, having a nominal gross domestic product (GDP) of $2.613 billion per annum. GDP increased from DKK 8 billion in 1999, to 21 billion in 2019. The vast majority of Faroese ...
References
*
*
External links
The banknotes of the Faroe Islands
{{DEFAULTSORT:Faroese krona
Circulating currencies
Currencies of Europe
Krone
Fixed exchange rate
Currencies introduced in 1940