Faroese króna færøsk krone (Danish) føroysk króna (Faroese)
200 Faroese króna
ISO 4217 Code	DKK
User(s)	Faroe Islands
Inflation	5. ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established The Faroe Islands or Faeroe Islands or simply Faroe(s or Faeroes (Føroyar meaning " Sheep Islands" Færøerne Old Norse In economics inflation or price inflation is a rise in the general level of prices of goods and services over a period of time 1%
Source	The World Factbook, 1999
Pegged with	Danish krone at par
Subunit
1/100	oyra
Symbol	kr
Plural	krónur
oyra	oyrur
Coins	Standard DKK coins
Banknotes	50, 100, 200, 500, 1000 krónur
Central bank	Danmarks Nationalbank
Website	www.nationalbanken.dk

The króna (plural: krónur) is the currency of the Faroe Islands. A fixed exchange rate, sometimes called a pegged exchange rate, is a type of Exchange rate regime wherein a Currency 's value is matched to the value of The krone ( sign: kr; code: DKK) is the Currency of Denmark, including the autonomous provinces of Greenland A currency sign is a graphic symbol often used as a shorthand for a Currency 's name Plural is a Grammatical number, typically referring to more than one of the Referent in the real world The krone ( sign: kr; code: DKK) is the Currency of Denmark, including the autonomous provinces of Greenland A central bank, reserve bank, or monetary authority is the entity responsible for the Monetary policy of a country or of a group of member states Danmarks Nationalbank (in Danish often simply Nationalbanken) is the Central bank of Denmark. A currency is a unit of exchange, facilitating the transfer of Goods and/or services It is one form of Money, where money is The Faroe Islands or Faeroe Islands or simply Faroe(s or Faeroes (Føroyar meaning " Sheep Islands" Færøerne Old Norse It is issued by the Danish National Bank. Danmarks Nationalbank (in Danish often simply Nationalbanken) is the Central bank of Denmark. It is not an independent currency but a version of the Danish krone. The krone ( sign: kr; code: DKK) is the Currency of Denmark, including the autonomous provinces of Greenland Consequently, it does not have an ISO 4217 currency code. ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established ISO 4217 is the International standard describing three-letter codes (also known as the currency code) to define the names of currencies established The ISO 4217 code for the Danish krone is DKK. The króna is subdivided into 100 oyrur (singular oyra).

History

When German forces occupied Denmark on 9 April 1940, the Danish krone was used in the Faroes. Events 193 - Septimius Severus is proclaimed Roman Emperor by the army in Illyricum (in the Balkans) Year 1940 ( MCMXL) was a Leap year starting on Monday (link will display the full 1940 calendar of the Gregorian calendar. The krone ( sign: kr; code: DKK) is the Currency of Denmark, including the autonomous provinces of Greenland 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. Events 1279 BC - Rameses II (The Great (19th dynasty becomes pharaoh of Ancient Egypt. They consisted of Danish notes with a special stamp. These notes replaced unstamped Danish at par. ^[1]

From 14 October, 1940, new banknotes were printed "on behalf of the National Bank of Denmark". Events 1066 - Norman Conquest: Battle of Hastings - In England on Senlac Hill seven miles from Hastings, the forces ^[2] 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. Events 218 BC - Second Punic War: Battle of the Trebia - Hannibal 's Carthaginian forces defeat those of the Currency Central was headed by a Board of 9, 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, or determined in Faroese Løgtingið (full official name Føroya løgting "Løgting of the Faroes" is the Parliament ^[3]

On 18 December 1940, the Faroese Króna was pegged to the British pound at a rate of 22. Events 218 BC - Second Punic War: Battle of the Trebia - Hannibal 's Carthaginian forces defeat those of the Year 1940 ( MCMXL) was a Leap year starting on Monday (link will display the full 1940 calendar of the Gregorian calendar. The Pound Sterling ( symbol £; ISO code: GBP) subdivided into 100 pence (singular penny) is the Currency 4 krónur = 1 pound. ^[4] 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. Events 196 BC - Ptolemy V ascends to the throne of Egypt. 1309 - Pope Clement V excommunicates Year 1941 ( MCMXLI) was a Common year starting on Wednesday (the link will display 1941 calendar of the Gregorian calendar. ^[5] At the same time, the Board of the Currency Central was reorganized 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. Her Majesty's Government, or when the monarch is male His Majesty's Government, is the title used by the Government of the United Kingdom, based at The Kingdom of Denmark ( ˈd̥ænmɑɡ̊ (archaic ˈd̥anmɑːɡ̊ commonly known as Denmark, is a country in the Scandinavian region of northern Europe ^[6] In 1941, coins were struck in London for use on the Faroe Islands. London ( ˈlʌndən is the capital and largest urban area in the United Kingdom.

As of 12 April 1949, the Faroese króna was separated from the pound sterling and fixed to the Danish krone at parity. Events 467 - Anthemius is elevated to Emperor of the Western Roman Empire. Year 1949 ( MCMXLIX) was a Common year starting on Saturday (link will display the full calendar of the Gregorian calendar. The Pound Sterling ( symbol £; ISO code: GBP) subdivided into 100 pence (singular penny) is the Currency The krone ( sign: kr; code: DKK) is the Currency of Denmark, including the autonomous provinces of Greenland ^[7] 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. Year 1951 ( MCMLI) was a Common year starting on Monday. Events of 1951 January ^[8]

Exchange with the Danish krone

Danish kroner are exchanged to Faroese krónur and vice versa by the National Bank of Denmark free of charge. The krone ( sign: kr; code: DKK) is the Currency of Denmark, including the autonomous provinces of Greenland Danmarks Nationalbank (in Danish often simply Nationalbanken) is the Central bank of Denmark. While normal Danish bank notes are no longer intended as legal tender in the Faroes, they are accepted there in most situations. Legal tender or forced tender is Payment that by Law, cannot be refused in settlement of a Debt ( Debtor cannot successfully be sued 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. Persons travelling from the Faroes to Denmark 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 occations, leading to non-standard issues.

During the late 19th 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 insciption: CFS and the other side the denomination: 4 or 16 skilling in goods ("x SKILLING I VARE"). Due to a shortage of currency in 1929-33, two merchants issued their own coins as well; J. F. Kjølbro in Klaksvig and S. P. Petersens Eftf in Fuglefjord. 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. ^[9]

5 øre 1941. Although this coin is of the regular Danish type of 1927-40, it was minted in London specifically for use in the Faroe Islands. By 1941, Denmark had switched to aluminium for the 5 øre coins.

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. Faroese ( føroyskt ˈføːɹɪst or) often also spelled Faeroese (cf 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 was introduced to replace older notes. Security printing is the field of the Printing industry that deals with the printing of items such as Banknotes Passports Tamper-evident Denominations are 50, 100, 200, 500 and 1000 krónur.

Numismatics

Postverk Føroya used to be the sole supplier of Faroese banknotes to collectors, but does not sell banknotes anymore. Postverk Føroya ˈfœɹja}} is the postal service of the Faroe Islands and was founded on 1 April 1976 under the Home Rule of the Faroe

See also

• Exchange rate regime
• British occupation of the Faroe Islands in World War II
• Economy of the Faroe Islands

References

External links

• Ron Wise's World Paper Money - Faeroe Islands ^{Mirror site}
• The Global History of Currencies - Faeroe Islands
• Global Financial Data currency histories table ( Microsoft Excel format)
• The new Faroese banknote series - National Bank of Denmark.
• Landsbank.fo - National Bank of the Faroes
• Faroe Islands Banknotes
• Information Memorandum 2005, 6. 2 Currency, p. 23.