What is the currency of the Faroe Islands?

The currency of the Faroe Islands is the Faroese króna. It is a localized form of the Danish krone, used in the self-governing Danish archipelago in the North Atlantic.

The Faroese króna is not an entirely independent currency with its own ISO 4217 code. It is issued by Danmarks Nationalbank and remains pegged one-to-one with the Danish krone. Danish coins circulate in the islands, while Faroese banknotes feature local language, landscapes, and wildlife.

The arrangement took shape during the Second World War. After Germany occupied mainland Denmark in April 1940 and Britain occupied the Faroe Islands, currency systems in the two territories became temporarily separated. Special Faroese notes were introduced that year. On 12 April 1949, the króna was fixed to the Danish krone at parity.

A common mix-up is answering “Danish krone.” That describes the underlying monetary system, but “Faroese króna” is the specific local name and the canonical answer for this question.