Editing Icelandic króna (section)

=={{anchor|ISJ}}First krona, 1874–1981==
The [[Danish krone]] was introduced to Iceland in 1874, replacing the earlier Danish currency, the [[Danish rigsdaler|rigsdaler]]. In 1885, Iceland began issuing its own banknotes.

The Icelandic krona separated from the [[Danish krone]] after the dissolution of the [[Scandinavian Monetary Union]] at the start of [[World War I]] and Icelandic sovereignty from [[Denmark]] in 1918. The first coins were issued in 1922.

Iceland was forced to devalue the Icelandic krona in 1922, by 23% against the Danish krone, which saw the beginning of an independent monetary policy in Iceland, and was to be the first of many subsequent devaluations of the krona.<ref name="Torhallsson">{{cite journal|last1=Torhallsson|first1=Baldur|last2=Joensen|first2=Tómas|title=Iceland's External Affairs from the Napoleonic Era to the occupation of Denmark: Danish and British Shelter|journal=Veftímaritið Stjórnmál og Stjórnsýsla|volume=11|issue=2|pages=187|doi=10.13177/irpa.a.2015.11.2.4|year=2015|doi-access=free|hdl=1946/23454|hdl-access=free}}</ref>

In 1925 the krona was pegged to the [[British pound]] for the next 14 years until the spring of 1939.<ref name="Torhallsson"/><ref>{{cite journal|title=Optimal Exchange Rate Policy: The Case of Iceland|journal=Working Papers|url=http://cb.is/uploads/files/Wp8.PDF|access-date=25 November 2016|issn=1028-9445}}</ref> Later in 1939 the currency was pegged to the [[US dollar]], which was maintained until 1949.<ref name="Torhallsson"/>

===Coins===
[[File:Coins of Iceland Island 25 aurar 1925 10 aurar 1922.jpg|thumb|The 10 and 25 aurar coins introduced in 1922]]
Iceland's first coins were 10 and 25 aurar pieces introduced in 1922. These were followed in 1925 by 1 krona and 2 krona pieces and in 1926 by 1, 2 and 5 aurar pieces. In 1946, the coins' designs were altered to remove the royal monogram (CXR), following [[1944 Icelandic constitutional referendum|abolition of the Icelandic monarchy]] (which had formed a [[personal union]] with Denmark) in 1944.

Starting in 1967, new coins were introduced due to a considerable fall in the value of the krona. 10 krona coins were introduced in that year, followed by 50 aurar and 5 krona pieces in 1969 and 50 krona pieces in 1970.

===Banknotes===
[[File:5 krónur banknote (obverse side) from 1928.png|thumb|A 1928 5 krónur note issued by the [[Landsbanki Íslands]].]]The first notes issued in 1885 by the ''Landssjóður Íslands'' were in denominations of 5, 10 and 50 krona. In 1904, the Bank of Iceland (''Íslands Banki'') took over note production and introduced 100 krona notes. In 1921, the ''Ríkissjóður Íslands'' began issuing paper money, with notes for 1, 5, 10 and 50 krona.

In 1928, another bank, the ''[[Landsbanki Íslands]]'', took over issuance of denominations of 5 krona and above, with the ''Ríkissjóður Íslands'' continuing to issue 1 krona notes until 1947. The Landsbanki Íslands introduced 500 krona notes in 1935, followed by 25 and 1000 krona notes in 1957.

In 1961, the ''[[Central Bank of Iceland|Seðlabanki Íslands]]'' became the central bank of Iceland and started issuing paper money, in denominations of 10, 25, 100, and 500 krona. They were manufactured in [[England]] by [[De La Rue|De la Rue]].