Iceland was an independent republic from 930 until 1262 when it fell under Norwegian rule. Norway and Denmark were in Dynastic Union beginning in 1380 and sovereignty over the island gradually shifted to Denmark. Iceland obtained its own constitution in 1874, gained autonomy on December 1, 1918, though it remained nominally under the Danish monarchy. The Allies occupied the island between May 10, 1940 and 1944, and on June 17, 1944, Iceland gained its full independence and was proclaimed a republic.
The Krone existed as a unit of account (DKA) as early as 1618 with 1 Krone equal to 8 Mark or 128 Skilling. The Rigsdaler Courant (DKC) became the principal coin of the realm in the 1700s, though there were several monetary systems based on the Rigsdaler. In general 1 Ducat was equal to 2 Speciedaler, 3 Krone, 12 Mark or 192 Skilling Danske until 1813. The note-issuing Courant Bank collapsed in 1813, making its notes practically worthless. The Rigsbank was founded and given the sole right to issue notes in Denmark in 1813, and in Iceland on March 20, 1815. The Rigsbankdaler (DKR) was introduced, with 1 Speciedaler equal to 2 Rigsbankdaler.
Denmark joined the Scandinavian Monetary Union in 1873, and Norwegian and Swedish coins were legal tender in Denmark until 1914. The monetary union led to the legal adoption of the gold standard, replaced the duodecimal system with the decimal system, and renamed the currency. Denmark introduced the Krone (DKK) equal to 1 Rigsbankdaler or 0.5 Speciedaler during the currency reform of May 27, 1873.
Iceland used coins of Norway and Denmark until it issued its first cons in 1922. Banknotes were authorized for Iceland by royal decree on April 22, 1778 when an Icelandic text was put on the back of notes issued by the Danish Courant Bank. These notes were recalled in 1820. Danish notes and coins remained the principal medium of exchange. Banknotes were issued by the Treasury (Landssjod Islands) from 1885 until 1912, by the Islands Banki from 1904 until 1920, by the National Bank of Iceland (Landsbanki Islands) from 1927 until 1961, and by the Central Bank of Iceland from 1961 until today.
After gaining its independence in 1918, Iceland passed its own coinage legislation in 1925 and a Currency act in 1968. Iceland introduced the Iceland Krona (ISK) at par with the Danish Krone. The Krona is divisible into 100 Aurar. |
