214) The Currency and Coinage of Iceland (issued by the Central Bank of Iceland or “Sedlabanki Islands”) : Kroner & Eyrir:

214) The Currency and Coinage of Iceland (issued by the Central Bank of Iceland or “Sedlabanki  Islands”) : Kroner & Eyrir:

About Icelandic Currency & Coinage:

The Western Scandinavian group of countries includes Denmark, Iceland and Greenland.

The Krona (plural “Kronur”) is the currency of Iceland. It is sub-divided into 100 Aurar (singular “Eyrir”), but this sub-division is no longer in use since 2003.

“Krona” ( in Latin the word “Corona” means “Crown”) and this name is similar to those of other Nordic currencies viz., the Danish Krone, Swedish Krona and the Norwegian Krone, while the term Eyrir is derived from the Latin word “Aura” meaning “Gold”. (Historically there were 100 gold pieces to a Crown).

The Central Bank of Iceland:

In 1961, the Central Bank of Iceland (Sedlabanki Islands) was established by an Act of Parliament, although the history of central banking in Iceland predates its establishment by several years.

The Bank functions as an independent institution, owned by the Icelandic State, but under its own separate administration.

It is responsible for monetary policy implementation with the primary objective of price stability and to contribute towards the Government’s main economic policy objectives so long as they are in conformity with its own vision of price stability.

The Central Bank of Iceland as mentioned above is called “Sedlabanki Islands”. The other major Commercial Banks are “Landsbankinn”, “Islandsbanki”, Arion Banki and MP Banki.

Banking in Iceland faced a crisis in 2008, which led to the Government taking over three of its largest commercial banks.

The Central Bank also undertakes standard central banking tasks which include – maintaining external reserves and promoting an efficient and safe financial system, issue of Banknotes and Coins (The Bank is issuing coins from 1967, when the right to issue coins was transferred to the bank from the National Treasury) and exchange rate management.

Presently, a total of six denominations of Banknotes and Coins are considered legal tender in Iceland – Banknotes denominations are – 10000, 5000, 2000, 1000 and 500 Kronur while the coin denominations are – 100, 50, 10, 5 and 1 Kr.

The Banknotes have been designed by Kristin Porkelsdottir and Stephen A. Fairbairn while the coins have been designed by Prostur Magnusson.

The Banknotes carry the facsimile signature of the Governors of the Central Bank and are watermarked with the portrait of statesman Jon Sigurosson (1811-1879).

The Coat of Arms or Emblem of Iceland:

The Coat of Arms of Iceland was adopted on 01.07.1944.

The Coat of Arms displays a silver-edged, red cross on a blue shieled (Blazoned: Azure (meaning “blue” on a cross Argent (meaning “silver”) a cross Gules (meaning “Red”).

The Supporters are the four Protectors of Iceland standing on a “pahoehoe” (lava block):

-      The Bull (or “Grioungur”) is the Protector of South-western Iceland

-      The Eagle or Griffin (or “Gammur”) is the Protector of North-western Iceland

-      The Dragon (or “Dreki”) is the Protector of the North-eastern part of Iceland

-      The Rock-Giant (or “Bergrisi”) is the Protector of South-Eastern Iceland.

The “Landvaettir” (or “land wights”) as the Protectors are called, are regarded in very high esteem and are also depicted on the Obverse of Icelandic Krona coins, while animals of the ocean (fish, crabs & dolphins) all appear on the Reverse.

These Protectors are very much a part of Icelandic Folklore and during the time of the Vikings, no ships or sea-vessels could bear any symbols which could be regarded as threatening viz, dragon-heads etc, lest the Protectors got unnecessarily provoked.

Historical development of Icelandic Currency:

The history of the official currency in Iceland spans more than two centuries. The Central Bank of Iceland and the National Museum of Iceland have collaborated together and put up a special numismatic collection focussed on the preservation of domestic and foreign coins and Banknotes, together with the history of Icelandic currency.

The Numismatic Museum was established in 1985 with the Numismatic Exhibition room opening on 06.12.1986 for public viewing. The Museum also publishes material on the history of Icelandic currency.

The First Krona (1874-1981):

In 1874, the Danish Krone was introduced in Iceland, when it substituted the earlier Danish currency, the Rigsdaler.

In 1885, Iceland began issuing & circulating its own Banknotes.

The Icelandic Krona was a part of the Scandinavian Monetary Union (SMU) at the beginning of World War I. However, upon the dissolution of the SMU in 1918, Iceland got its autonomy from Denmark.

In 1944, Iceland attained the status of an independent Republic.

Before 1918, the coins of Denmark circulated in Iceland.

However, after Iceland became an Autonomous State in 1918, distinctive coins of Iceland began to circulate from 1922 onwards. These coins were in the denominations of 10 Aurar and 25 Aurar.

In 1925, 1, 2 and 5 Krona coins were introduced followed by 1, 2 and 5 Aurar coins in 1926.

Prior to 1944, several coins issued, bore the crowned monogram or a crowned shield flanked by the Royal Monogram on the Obverse, in the style of Danish coins. On the Reverse was depicted the country’s name, and value in Icelandic (eg: Eyrir, Aurar, Krona or Kronur).

However, from 1945 onwards, (after Iceland became an Independent Republic in 1944), the coin designs underwent a change, in which the Crown and the Royal Monogram (CXR) were removed and only the shield was retained.

From 1946, a new version of the Arms flanked by the guardian Spirits of Iceland were circulated in Aluminium-Bronze Krona coins.

In 1967, Icelandic currency underwent severe inflation and a new Series of Coins was issued with 10000 old Krona being equivalent to 1 new Krona. The denominations issued in this Series were 10 Kronur, 50 Aurar and 5 Kronur (both in 1969) and 50 Kronur (in 1970).

In this Series, the Guardian Spirits were depicted on the coins – sometimes individually or at other times collectively on the Obverse of the coins. The Reverse faces contained images of different species of fish and marine life.

In 1968, the 50^th Anniversary of Sovereignty of Iceland was commemorated by a 50 Kronur coin featuring the Parliament building and the depiction of the Parliament on this denomination of coins was continued till 1980.

The Second Krona (1981 onwards):

In 1981, the Icelandic Krona was revalued, again, because of hyperinflation.

The exchange rate was 100 old Kronur being equal to 1 new Krona.

Owing to inflationary pressures, coins having a value of less than one Krona were not seen in circulation for several years.

In view of this, the Government of Iceland in September 2002, was prompted to decree two regulations in terms of which,  “all monetary amounts mentioned on invoices and financial claims were required be stated and paid in whole Kronur” only and “coins of less than one Krona were to be withdrawn from circulation”.

Since 2003, under these Regulations, Icelandic Banks no longer accept any coins denominated in Aurar.

As such, only coins of 1 Krona and above are presently seen in circulation.

The 1981 Series had introduced the following denominations of coins with the designs as under:

 1 Krona (or “EIN KRONA”) – introduced in 1981, with a stylised representation of a giant who is one of the four Guardian Spirits of Iceland on the Obverse and the Atlantic Cod (or “Gadus morhua”) on the Reverse.

The specifications of this coin are:

Diameter: 21.50 mm; Weight: 4.50 gms; Metal Composition: 75% Copper and 25% Nickel). The edge is milled.

In 1989, a 10 Kronur coin was put into circulation with a metallic composition of Nickel-plated steel weighing 4.0 gms, with all other specifications remaining the same.

 5 Kronur (or “FIMM KRONUR”) – introduced in 1981, with a stylised representation of the four Guardian Spirits of Iceland on the Obverse and two short beaked Common Dolphin (or “Delphinus delphis”) on the Reverse.

The specifications of this coin are:

Diameter: 24.50 mm; Weight: 6.50 gms; Metal Composition: 75% Copper and 25% Nickel). The edge is milled.

 10 Kronur (or “TIU KRONUR”) – introduced in 1984, with a stylised representation of the four Guardian Spirits of Iceland on the Obverse and four Capelin (or “Mallotus villosus”) on the Reverse.

The specifications of this coin are:

Diameter: 27.50 mm; Weight: 8.00 gms; Thickness: 1.78 mm; Metal Composition: 75% Copper and 25% Nickel). The edge is milled.

In 1996, a 10 Kronur coin was put into circulation with a metallic composition of Nickel-plated steel weighing 6.9 gms, with all other specifications remaining the same.

 50 Kronur (or “FIMMTIU KRONUR”) – introduced in 1987, with a stylised representation of the four Guardian Spirits of Iceland on the Obverse and a Shore Crab (or “Carcinus Maenas”) on the Reverse.

The specifications of this coin are:

Diameter: 23.0 mm; Weight: 8.25 gms; Thickness: 2.60 mm; Metal Composition: Nickel brass (70% Copper, 24.5% Zinc and 5.5% Nickel). The edge is milled.

 100 Kronur (or “EITT HUNDRAD KRONUR”)– introduced in 1995, with a stylised representation of the four Guardian Spirits of Iceland on the Obverse and a Lump Fish (or “Cylopterus lumpus”) on the Reverse.

The specifications of this coin are:

Diameter: 25.5 mm; Weight: 8.50 gms; Thickness: 2.25 mm; Metal Composition: Nickel brass (70% Copper, 24.5% Zinc and 5.5% Nickel). The edge is alternately plain and milled.

Banknotes:

In 1885, Iceland began issuing & circulating its own Banknotes. The first banknotes were issued by Landssjoor Islands in the denominations of 5, 10 and 50 Kronur.

In 1904, the Bank of Iceland (Islands Banki) took over the banknote printing and issued 100 Kronur Banknotes.

In 1921, the “Rikissjoour Islands” Bank began issuing paper currency, in the denominations of 1, 5, 10 and 50 Kronur.

In 1929, the “Landsbanki Islands” Bank took over issuance Banknotes in the denominations of 5 Kronur and above while the “Rikissjoour Islands” continued to issue 1 Krona Banknotes until 1947.

In 1935, the “Landsbanki Islands” Bank circulated Banknotes of 500 Kronur denomination.

In 1957, the “Landsbanki Islands” Bank circulated 25 and 1000 Kronur Banknotes.

In 1961, the “Sedlabanki Islands” became the Central Bank of Iceland and started issuing paper money in the denominations of 10, 25, 100, 500, 1000 and 5000 Kronur.

Issue of Icelandic Banknotes in recent times:

Banknotes are printed with the dates from which the legal basis of the Currency is derived from.

Thus, in 1981 (The Second Krona Series), Banknotes in the denominations of 10, 50, 100 and 500 Kronur were issued based on the Law of 20.03.1961.

Then again, Banknotes in the denomination of 1000 Kronur were issued in 1984 and 5000 Kronur Banknotes were issued in 1986 under the same Law.

The Law of 29^th March 1961 Series of Banknotes:

On the Front of the 10 Kronur Banknote is depicted “Arngrimur Jonsson Laerdi) (meaning “Arngrimur Jonsson the Learned”) (1568-1648).

On the Back of the 10 Kronur Banknote is depicted Old Icelandic household scene based on Auguste Mayer’s drawing.

In Icelandic, the denomination of the Banknote is mentioned as “Tiu Kronur”.

The year of first issue of this denomination of Banknote is 1981. This denomination Banknote is no longer in circulation.

The size of this Banknote is 130 x 70 mm and its colour is blue.

The watermark is that of Jon Sigurosson.

On the Front of the 50 Kronur Banknote is depicted Guobrandur Porlaksson.

On the Back of the 50 Kronur Banknote is depicted Printers at work in the 16^th Century.

The year of first issue of this denomination of Banknote is 1981. This denomination Banknote is no longer in circulation.

The size of this Banknote is 135 x 70 mm and its colour is brown.

The watermark is that of Jon Sigurosson.

On the Front of the 100 Kronur Banknote is depicted Ami Magnusson.

On the Back of the 100 Kronur Banknote is depicted a monastic scribe.

The year of first issue of this denomination of Banknote is 1981. This denomination Banknote is no longer in circulation.

The size of this Banknote is 140 x 70 mm and its colour is green.

The watermark is that of Jon Sigurosson.

On the Front of the 500 Kronur Banknote is depicted Jon Sigurosson.

Jon Sigurosson (1811-1879): He was the leader of Iceland’s movement for Independence and a Statesman.

On the Back of the 500 Kronur Banknote is depicted Jon at his writing desk with tapestry owned by him and other articles from the National Museum’s collection of his belongings. To the right is Reykjavik Grammar school, where Parliament met during Jon Sigurosson’s time.

In Icelandic, the denomination of the Banknote is mentioned as “Fimm Hundrud Kronur”.

 The year of first issue of this denomination of Banknote is 1981. This denomination of Banknote is presently in circulation.

The size of this Banknote is 145 x 70 mm and its colour is red.

The watermark is that of Jon Sigurosson.

On the Front of the 1000 Kronur Banknote is depicted Brynjolfur Sveinsson (1605-1675) who was Bishop of Skalholt. The date of issue of this Banknote is shown as “22 Mai 2001”.

The borders and background of this Banknote feature pictures from a bed-spread at the National Museum. The written denomination is in a typeface matching the inscription on the baptismal font at “Brynjolfskirkja” (meaning “Brynjolfur’s church”)

On the Back of the 1000 Kronur Banknote is depicted Brynjolfskirkja church (1650–1802) at Skalholt with a cross-section of it in the background. At the side is an image of the Madonna from a gold ring owned by Bishop Brynjolfur Sveinsson. (The main pattern is the same as on the borders on the Front.).

In Icelandic, the denomination of the Banknote is mentioned as “Eitt Pusund Kronur”.

 The year of first issue of this denomination of Banknote is 1984. This denomination of Banknote is presently in circulation.

The size of this Banknote is 150 x 70 mm and its colour is purple.

The watermark is that of Jon Sigurosson.

On the Front of the 5000 Kronur Banknote is depicted Ragnheiour Jonsdottir(1646-1715), the third wife of Gisli Porlaksson, Bishop of Holar. Also seen on the Front are the Bishop and his two earlier wives – Groa Porleifsdottir and Ingibjorg Benediktsdottir.

On the Back of the 5000 Kronur Banknote is depicted Ragnheiour Jonsdottir instructing two girls in Embroidery work with initials from her pattern book at the side.

In Icelandic, the denomination of the Banknote is mentioned as “Fimm Pusund Kronur”.

The borders and main pattern on both sides and the embroidered lettering on the Front are copied from the Laufaskirkja altar cloth at the National Museum in Iceland.

 The year of first issue of this denomination of Banknote is 1986. This denomination of Banknote is presently in circulation.

The size of this Banknote is 155 x 70 mm and its colour is red.

The watermark is that of Jon Sigurosson.

This Series was followed by the Law of 1986 Series:

Four denominations were issued in this Series of which the 100, 500 and 1000 Kronur Banknotes were identical to the earlier Series. All these denominations were first issued in 1994.

However, the 2000 Kronur Banknote in this Series series underwent a change and was issued with the following features:

On the Front of the 2000 Kronur Banknote is depicted Johannes Kjarval (1885-1972) with a stylised detail from his painting “Outside and Inside” in the background.

On the Back of the 2000 Kronur Banknote is depicted Kjarval’s painting “Yearning for Flight” and his drawing “Woman and Flowers”.

The year of first issue of this denomination of Banknote is 1995. This denomination of Banknote is presently in circulation.

The size of this Banknote is 150 x 70 mm and its colour is multicolour (blue-violet on the Front & yellow on the Back).

The Law of 22.05.2001 Series:

Three denominations were issued in this Series of which the  500,1000 and 5000 Kronur Banknotes were identical to the earlier Series, but the under-print design on these Banknotes, extended upwards and downwards  to fill the margin.

The dates of issue of these Banknotes were 500 Kronur (October 2005), 1000 Kronur (November 2004) and 5000 Kronur (November 2003). With the introduction of this Series, earlier issued Banknotes were withdrawn from circulation.

This Series also, introduced a new denomination of Banknote in the 10000 Kronur denomination which was issued with the following features:

On the Front of the 10000 Kronur Banknote is depicted Jonas Hallgrimsson, outlines of Haafjall and Hraundrangi mountains formed from the Icelandic words coined by Jonas, floral pattern from the cover of the periodical “Fjolnir”, Jonas’ handwritten poem “Feroalok” (meaning “Journey’s End”) and the topographical outline of the mountain Skjalbreiour.

On the Back of the 10000 Kronur Banknote is depicted images of  Plover and Hallgrimsson’s poem “Skjaldbreiour mountain”, a pencil drawing of the topographical outline of mountain Skjaldbreiour,  from Jonas Hallgrimsson’s stopping place at Neori-Brunnar and a winter photograph of the snow on the mountain. The outlines of Skjaldbreiour are superimposed on the picture in perspective. Jonas’ handwritten poem “Fjallio Skjaldbreiour” (meaning “Mount Skjaldbreiour”)  and  scallop shells.

In Icelandic, the denomination of the Banknote is mentioned as “Tiu Pusund Kronur”.

The date of first issue of this denomination of Banknote is 24.10.2013. This denomination of Banknote is presently in circulation.

References to the design of the cover of “Fjolnir” can be seen in the security threads and elsewhere on the Banknote.

 The size of this Banknote is 162 x 70 mm and its colour is multicolour.

The Security features on presently circulating Banknotes:

The Security Features on the 10000 Kronur Banknote are almost the same as those on other Icelandic Banknotes described later.

The difference is however, that in place of the security thread and metal foil is a new security feature called “Optiks” which is multi-dimensional and is composed of several security features.

Optiks is an 18 mm wide thread with a see-through window. It contains a repeating image of a flower and the text “10000 KRONUR” which can be seen when the Banknote is held up to light. The thread contains two fluorescent bands that are visible under Ultraviolet light.

                     Optiks Security thread & Window

                           Optiks Security thread & Fluorescent bands

                                  Optiks Security thread on the Back

Other Security Features include:

Watermark: Portrait of Jon Sigurosson, which is visible on both sides when held up to light.

Optiks Security thread: contains two fluorescent bands which are visible under UV light. On the Back, the thread contains the repeating image a flower and the text 10000 KRONUR which is visible when the Banknote is held up to light.

Intaglio Printing: there is dark blue intaglio printing on both sides of the banknote which can be detected by touch. The intaglio on the Front is the portrait, poem and the numeral 10000 in the top left corner.

The intaglio on the Back is the birds, the poem, the 10000 numeral at the bottom left and top right and the shell on the bottom right corner.

Red Serial number on the Front: The unique serial number of the Banknote is in red on the Front but appears yellow under UV light.

Microtext: The number 10000 is printed horizontally with blue shadowing at the top left of the Front and is repeated on the Back.

Micro-engraved Lettering Tint (MELT): The number 10000 is printed horizontally with blue shadowing at the top left of the Front and is repeated on the Back. When magnified, the shadowing of the numbers forms a continuous pattern on the abbreviation “SI” (short for “Sedlabanki Islands”).

Electrotype watermark: Portrait of Jon Sigurosson and the numeral 10000.

Extra small print: Throughout the Centre of the Front is extra small print in continuous vertical lines in the mountains Haafjall and Hraundrangi, formed by a variety of Icelandic words that were of Jonas Hallgrimsson.

Blink: A fluorescent green print enclosing the number 10000 is visible centrally on the Banknote when it is exposed to UV light.

Cornerstone: A reinforced cornerstone watermark enhances the Banknote’s durability and Security.

Raw Cotton Paper: which has a different feel from the normal paper.

 For the visually impaired, there are four horizontal intaglio-printed lines on the Front in the 10000 Kronur Banknotes.

Security features on 5000 Kronur Banknotes:

Watermark of Jon Sigurosson, Security thread, Intaglio Printing, Micro-text, Red serial number on the Front, Micro – engraved lettering tint (MELT), Gold foil, Electrotype water mark, Extra small Print, Blink, Raw cotton paper.

 For the visually impaired, there are three vertical intaglio-printed lines on the Front in the 5000 Kronur Banknotes.

Security features on 2000 Kronur Banknotes:

 Watermark of Jon Sigurosson, Security thread, Intaglio Printing, Unique serial number of the left and right of the front side, Signatures which appear yellow under UV light., Micro-text, Micro-engraved lettering Tint (MELT), Raw cotton paper.

 For the visually impaired, there is an open intaglio-printed triangle on the obverse in the 2000 Kronur Banknotes.

Security features on 1000 Kronur Banknotes:

Watermark of Jon Sigurosson, Security thread, Intaglio Printing, Unique red serial number on the front side, Micro-text, Micro-engraved lettering Tint (MELT), Silver Foil, Extra Small Print, Blink(Fluorescent green print enclosing the number 1000 visible towards the bottom of the middle when the Banknote is exposed to UV light), Corner-stone, Raw cotton paper.

 For the visually impaired, there are two vertical intaglio-printed lines on the Front in the 1000 Kronur Banknotes.

Security features on 500 Kronur Banknotes:

Watermark of Jon Sigurosson, Security thread, Intaglio Printing, Unique red serial number on the front side, Micro-text, Micro-engraved lettering Tint (MELT), Extra Small Print, Blink, Corner-stone, Raw cotton paper.

 (For the visually impaired, there is a single vertical intaglio-printed line on the obverse in the 500 Kronur Banknotes).

(These Banknotes are from the collection of Jayant Biswas. Banknotes scanned and Post researched and written by Rajeev Prasad)







Links:

1) Mint of Finland: Provincial coins issued in 2010 and 2011 commemorating the cultures/traditions of the nint historic provinces which ceased to be Administrative Regions in 1634

2) Currency of Denmark: Krone and Ore (Part I): Historical Development of Coinage in Denmark

3) Currency of Denmark: Krone and Ore (Part II): The Evolution of Banknotes in Denmark

 4) "The Golden Age of Finnish Art": A 10 Euro Silver Coin with the afore-mentioned theme as part of the sub-theme for 2017 - "The Age of Iron and Glass" under the overall theme of "Ages of Europe" issued by the Mint of Finland on 20.02.2017: ii) "Europa Coin Programme" ot the "European Silver Star Programme" or the "Eurostar Programme"

5) Norges Bank (Central Bank of Norway): Introduction of the VIII Series of innovative/pixelated Banknotes with the theme "The Sea" in a phased manner from May 2017 to Q4 2020 and gradual withdrawal of the presently circulating Banknotes (VII Series) 

6) Currency and Coinage of Sweden: Kronor and Ore: New Banknote Series and Coins being issued in 2015 and 2016 

7) Currency and Coinage of Iceland: issued by by the Central Bank of Iceland or "Sedlabanki Islands": Kroner & Eyrir