Króna is the name of the currency used in Iceland . The plural form is krónur. The name, meaning originally "crown", is analogous to that of other Nordic currencies. The ISO currency code is ISK.
The Icelandic króna became a separate currency from the Scandinavian krona after dissolution of the Scandinavian Monetary Union at World War I and after gaining sovereignty from Denmark in 1918. Circulation of the Icelandic króna is since 1961 controlled by Seðlabanki Íslands, the Central Bank of Iceland. In 1980 the Icelandic króna was revalued, with 100 old krónur being worth 1 new króna. Technically the króna is composed of 100 aurar (singular eyrir), although in practice coins of less than 1 Króna have not circulated for many years.
As of 2003, the following notes and coins (issued since 1980) are legal tender:
- Notes: 5000, 2000, 1000, 500, (100, 50, 10 krónur.)
- Coins: 100, 50, 10, 5, 1 krónur, (and 50, 10, 5 aurar.)
In practice, notes of 100 krónur or less, and coins of less that 1 króna no longer circulate, as they have been withdrawn by the central bank.
In September 2002 the Icelandic Prime Minister signed two regulations, saying that all monetary amounts on invoices and financial claims should be stated and paid in whole krónur only, and that coins of less value than one króna should be recalled from circulation. As of October 1st 2003, Icelandic banks no longer accept the 5, 10 and 50 aurar coins.
Before this, the 5 aurar coin was the least valued coin that was circulating in the world.
See also: Scandinavian Monetary Union
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