Faroese Króna: Currency, Payments, and Economy

The Faroese Króna is the official currency of the Faroe Islands, an autonomous territory within the Kingdom of Denmark.

It's pegged to the Danish Krone at a fixed exchange rate, making it a stable currency for everyday transactions.

The Faroese Króna is divided into 100 øre, with coins available in denominations of 25 øre and 50 øre, and banknotes in denominations of 50, 100, 200, and 500 krónur.

The Faroese Króna is widely accepted in the Faroe Islands, but Danish Krone is also accepted in some tourist areas and larger businesses.

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The Faroese króna has a fascinating history that spans several decades. It all began in 1940 when German forces invaded and occupied Denmark, causing a disruption in the exchange between the Faroe Islands and Denmark.

The Danish krone was used in the Faroes, but all exchange between the two countries halted. In response, special Faroese banknotes were introduced on May 31, 1940, featuring Danish notes with a special stamp.

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These notes replaced unstamped Danish notes at par, effectively creating a new currency for the Faroe Islands. The value of these new banknotes was the same as those already in use.

Currency Central was established on December 18, 1940, to monitor foreign trade and secure the solvency of the Faroes. The board consisted of nine members, including the judge, representatives from Faroe Fish Export, the Faroese Merchants' Union, Føroya Banki, Føroya Sparikassi, and the Løgting.

The Faroese króna was pegged to the British pound at a rate of 22.4 krónur = 1 pound on December 18, 1940. 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."

Coins were struck in London for use on the Faroe Islands in 1941. The Faroese króna was separated from the pound sterling and fixed to the Danish krone at parity on April 12, 1949.

Here is a summary of the key events in the history of the Faroese króna:

The Faroese króna is the official currency of the Faroe Islands, and it's interesting to note that there are two currencies of equal value: the Faroese króna and the Danish krone.

The Faroese government prints its own bank notes, but only Danish coins are used throughout the country. This is because Danish notes are equally acceptable as Faroese notes everywhere.

You can exchange your money for the Faroese króna, but be aware that exchange rates for the Faroese (Danish) króna as of August 2022 are roughly: DKK 100 = €13.4 / £11.4 / $13.6.

The Faroese króna comes in various denominations, including banknotes of 50 kroner, 100 kroner, 200 kroner, 500 kroner, and 1000 kroner, and coins of 50 øre (cents), and 1, 2, 5, 10, and 20 kroner.

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The Faroese króna is the official currency of the Faroe Islands, but it's not the only one in use. There are two currencies of equal value, the Faroese króna and the Danish krone.

Danish coins are used throughout the country, while the Faroese government prints its own bank notes. Danish notes are equally acceptable as Faroese notes throughout the country.

The Faroese króna comes in five denominations of banknotes: 50 kroner, 100 kroner, 200 kroner, 500 kroner, and 1000 krona.

Only a few places in the major towns accept foreign currency, and the exchange rate is rarely favorable.

As of August 2022, the exchange rate for the Faroese (Danish) króna is roughly: DKK 100 = €13.4 / £11.4 / $13.6.

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Electronic payments have become increasingly popular worldwide, and the Faroe Islands are no exception.

The Faroese Krona seamlessly integrates with modern payment systems, making it a convenient and efficient way to engage in financial transactions.

Many establishments, from small businesses to larger enterprises, have adapted to accept electronic payments, recognizing the convenience and accessibility they offer to customers.

Visitors to the Faroe Islands can confidently use their cards or mobile payment apps to make purchases, eliminating the need for significant amounts of physical currency.

The Faroese króna is primarily used within the Faroe Islands, but its international recognition and exchange can be a bit tricky.

While the Faroese króna is not widely recognized or accepted outside of the archipelago, it's not entirely unknown either. In fact, the National Bank of Denmark exchanges Danish kroner to Faroese krónur and vice versa for free.

Travelers planning to visit other countries after their Faroe Islands adventure should consider exchanging any remaining Faroese króna before leaving. International airports and currency exchange offices within the Faroe Islands offer convenient facilities for converting Faroese króna to other major currencies.

It's always advisable to plan ahead and check exchange rates to ensure the optimal use of funds when transitioning from the Faroe Islands to another destination. This will help you avoid potential complications and make the most of your money.

Central banks, like the Nationalbanken in the Faroe Islands, play a crucial role in regulating the supply of the króna and setting interest rates, which can impact exchange rates. By understanding these dynamics, you can make informed decisions about exchanging your Faroese króna.

Collecting Faroese króna can be a unique and exciting experience, especially for those interested in numismatics. The region's history of issuing non-standard coins due to shortages has led to some fascinating and rare pieces.

If you're looking to start or expand your collection, be aware that Faroese banknotes are no longer available to collectors from Danmarks Nationalbank, as their web shop was closed at the end of 2023. Postverk Føroya, the Faroese postal service, used to be the sole supplier of Faroese banknotes to collectors, but does not sell banknotes anymore.

The Faroe Islands use standard Danish coinage, but have experienced a shortage of small currency on several occasions, leading to non-standard issues. These issues include a set of coins minted in London during World War II, which can be identified by their bronze and copper-nickel composition, unlike the comparable coins minted in Denmark.

If you're interested in collecting Faroese coins, here are some key denominations to look out for:

The Faroe Islands have a fascinating numismatic history. The region has experienced a shortage of small currency on several occasions, leading to non-standard issues.

During the late 19th century, a German merchant named C.F. Siemsen issued his own private coinage, which was brass and featured the inscription "CFS" on one side and the denomination on the other. The coins were used in both the Faroe Islands and Iceland.

In 1929-33, two merchants issued their own coins due to a shortage of currency: J.F. Kjølbro in Klaksvík and S.P. Petersens Eftf in Fuglafjørður. The Kjølbro issue was made of aluminium and had various denominations, including 10, 25, and 50 øre, as well as 1, 2, 5, and 10 kroner.

Faroese banknotes are no longer available to collectors from Danmarks Nationalbank, and the Faroese postal service, Posta, also stopped selling them.

The Faroe Islands use standard Danish coinage, but there have been instances where non-standard issues were created due to shortages.

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Banknotes have a rich history in the Faroe Islands, and collectors can still find some interesting pieces to add to their collections. Faroese banknotes are no longer available to collectors from Danmarks Nationalbank since their web shop was closed at the end of 2023.

However, the Faroese postal service, now known as 'Posta', used to be the sole supplier of Faroese banknotes to collectors, but they don't sell banknotes anymore. This means collectors will have to look elsewhere for these unique pieces.

In 1940, Danish 5, 20, 50, 100, and 500 kroner notes were overstamped with Kun Gyldig paa Færøerne, Færø Amt, Juni 1940 for issue on the Faroe Islands. This was a significant step towards achieving monetary independence.

The Færø Amt issued distinct notes in denominations of 1, 5, 10, and 100 kroner later that year. These early banknotes feature unique designs that represent the Faroese culture and heritage.

Here's a list of some of the current and withdrawn Faroese banknotes:

Collectors can still find these unique pieces, but they'll need to look beyond the usual sources.

In the Faroe Islands, Danish kroner can be exchanged for Faroese krónur and vice versa by the National Bank of Denmark free of charge.

The National Bank of Denmark plays a crucial role in facilitating the exchange of currencies between the two countries.

Normal Danish bank notes are no longer intended as legal tender in the Faroes, but they are still widely accepted in all situations.

This can be a blessing for tourists, as they can use their Danish bank notes without any issues.

However, in Denmark proper, the existence of the Faroese króna is poorly known, particularly the fact that it is officially the same currency as the Danish krone.

Consequently, very few Danish stores will accept Faroese notes, making it essential to exchange them before traveling to Denmark.

Exchange offices in other countries often have problems with Faroese notes, so it's recommended to exchange them before embarking on a trip.

The Faroe Islands and their economy are an interesting combination. The Faroese króna is the official currency of the Faroe Islands, and it's widely accepted in touristy establishments.

You can use credit cards from VISA and Mastercard, debit cards linked to your bank account, or even mobile payments like Apple Pay or Google Pay. However, it's worth noting that using a prepaid travel card is generally the best way to pay in the Faroe Islands due to lower fees on Faroese króna currency exchange.

A prepaid travel card like Revolut offers excellent exchange rates, multi-currency balances, and a travel debit card that lets you spend like a local. Revolut is available in several countries, including the US, UK, and EU, but you may need to check what options are available in your country.

The Faroese government is committed to promoting economic growth, and the country is establishing itself as a global player in various sectors, including renewable energy and aquaculture. This could lead to significant growth in demand and value for the Faroese króna.

If you're planning to travel to the Faroe Islands, consider using a prepaid travel card like Revolut or Wise Account, depending on your location.

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Traveling to the Faroe Islands requires some planning when it comes to payment methods. Credit cards from VISA and Mastercard are widely accepted in touristy establishments.

You'll also find debit cards linked to your bank account, which let you make purchases at point-of-sale terminals and withdraw cash. Mobile payment services like Apple Pay and Google Pay are becoming increasingly popular, but check beforehand how available they are in the Faroes.

Having some Faroese króna banknotes can be helpful for small purchases, tipping, and emergencies. You can exchange currency at a bank or exchange bureau before or upon arrival.

A prepaid travel card is almost always the best way to pay in the Faroe Islands, as they generally incur lower fees on Faroese króna currency exchange than credit cards or bank debit cards do. Many prepaid travel cards let you hold multi-currency balances, allowing you to dodge DCCs and other sneaky fees.

Some popular prepaid travel card options include Revolut, which offers excellent exchange rates and multi-currency balances, and the Wise Account, which is available in Canada and New Zealand.

Here are some payment methods to consider when traveling to the Faroe Islands:

Sending money to the Faroe Islands can be a challenge due to high fees and exchange rates with international banks, which often constitute more than 10% of your transfer amount.

Fortunately, there are many trustworthy alternative providers that offer better exchange rates, far outdoing those of banks. You can find the cheapest provider in real time with Monito's live comparison tool.

If you're planning to send money to the Faroe Islands, be aware that the cheapest provider varies depending on where you're sending from, the amount you're sending, and your payment method.

High fees and exchange rates can be a significant burden, but with the right provider, you can save a substantial amount.