Banknotes and Coins
The increase in banknotes and coins in circulation was very moderate in 2002 compared to the previous years.
Danmarks Nationalbank in 2002 issued an upgraded Danish 100-krone banknote with new security features.
A new 20-krone coin with Århus City Hall Tower was issued as the first in a series of thematic coins with towers in Denmark as their motif.
A new Faroese 100-krone banknote, the second banknote in the new Faroese series, was issued in January 2003.
Banknotes and coins in circulation
In 2002 the total banknotes in circulation increased by kr. 0.1 billion, representing an increase of 0.3 per cent. This increase is significantly lower than in the preceding years, when banknotes in circulation showed annual increases of 5-6 per cent, disregarding the extraordinary increase up to the millennium rollover and the subsequent equivalent decrease, cf. the 2000 Annual Report, p. 69. The moderate increase in banknotes in circulation is, inter alia, attributable to a decrease in the number of 1,000-krone banknotes in circulation, cf. Chart 27. As yet it is too early to evaluate whether this reflects a general change of level.
| Circulation of banknotes |
Chart 27
|
 |
|
| Note: End of month. | |
Coins in circulation increased by 3.7 per cent to kr. 4.5 billion in 2002. The greatest increase during the year was in the circulation of 1-krone, 10-krone and 20-krone coins, cf. Chart 28.
| Circulation of coins |
Chart 28
|
 |
|
| Note: End of month. | |
Pursuant to the Danmarks Nationalbank Act of 1936 the circulation of banknotes must be covered by Danmarks Nationalbank's holdings of gold and other assets. Since September 1939 an exemption from the gold coverage provision has been granted.
Upgraded 100-krone banknote with new security features
In 2002 Danmarks Nationalbank issued an upgraded 100-krone banknote with two new security features – a hologram and fluorescent colours. The portrait and motifs on the banknote remain the same, cf. Box 3.
|
|
The hologram is an important security feature, since the metallic field and the shimmer effect when the hologram is moved can only be reproduced with great difficulty. The new fluorescent colours, which light up under ultra-violet light, are also hard to reproduce.
With the existing security features, the new security features will make Danish banknotes even harder to counterfeit. The old banknotes remain legal tender, but are gradually withdrawn. The other banknote denominations are expected to be upgraded before the end of 2004.
In connection with the issue of the new, upgraded 100-krone banknote a folder describing the security features was distributed to all households in Denmark. Danmarks Nationalbank also published this information via free postcards made available to cafés, cinemas, etc., and via www.nationalbanken.dk.
Counterfeit banknotes and coins
Since 1998 the number of counterfeit banknotes found in circulation in Denmark has been at an annual level of around 700. In 2002 there was a significant increase, as 1,139 counterfeit banknotes were found in circulation, cf. Chart 29. The increase is not attributable to single cases of counterfeiting. The increase relates to 100-, 200- and 500-krone banknotes.
| Number of counterfeit banknotes found in circulation |
Chart 29
|
 |
|
The most frequently counterfeited denomination is the 500-krone banknote. In 2002, 664 counterfeit 500-krone banknotes were found in circulation, which is an increase by almost 75 per cent from 381 counterfeit banknotes in 2001. The 500-krone banknote is preferred by counterfeiters presumably because of its high value, and the fact that it is used in payment transactions more frequently than the 1,000-krone banknote.
The incidence of counterfeiting is still limited in Denmark compared to other countries. In 2002, 8.5 counterfeit banknotes were found in circulation per million genuine banknotes. This ratio is low compared to similar countries.
Large numbers of counterfeit coins are rarely seen, but in 2002 there was one case where counterfeit 20-krone coins for a total value of approximately kr. 100,000 were seized. The counterfeit coins had been cast and were of poor quality.
Counterfeiting, attempted counterfeiting, or aiding and abetting counterfeiters, are serious offences liable for criminal penalties under the penal code. The maximum penalty is 12 years.
Discoloured banknotes
Danmarks Nationalbank has specified the guidelines for replacement of discoloured and damaged banknotes which originate from criminal activities in the "Rules for Danmarks Nationalbank's replacement of discoloured and damaged banknotes". In cooperation with the Danish Bankers Association Danmarks Nationalbank has issued a folder, "Kun ærlige penge tak!". This folder presents examples of banknotes that have been damaged by anti-theft devices and describes how to react if presented with suspicious-looking banknotes. The folder is distributed to banks via the Danish Bankers Association, and to a number of trade associations for further distribution to their members. The rules are included in the Appendix, cf. p. 154. The folder can be ordered (in Danish only) from www.nationalbanken.dk.
New 20-krone coin with Århus City Hall Tower
On 2 December 2002 Danmarks Nationalbank put a new 20-krone coin into circulation. It is the first in a new series of thematic coins that share the common motif of towers in Denmark. A relief of Århus City Hall Tower is the motif chosen for the first thematic coin, issued in connection with the 100th anniversary of the birth of the architect Arne Jacobsen, who designed both the Århus City Hall and the Danmarks Nationalbank building. The relief of Århus City Hall Tower is by the sculptor and graphic artist Lis Nogel. The obverse of the coin shows the portrait of the Queen by Professor Mogens Møller, cf. Box 4.
|
|
The thematic coin is the first of a series of 7-10 coins to be issued over a number of years. It is of the same size and alloy as the ordinary 20-krone coin in circulation and is minted in an edition of approximately 1 million coins. Since the edition is limited, most 20-krone coins in circulation will still bear the national coat of arms on the reverse.
The reason for issuing a series of thematic coins is e.g. the wish to introduce new artists to the work of designing coins, so that Denmark will have more artists that master this special art. New motifs also stimulate interest in coins among the general public.
During 2003 Danmarks Nationalbank will invite those interested to submit suggestions via www.nationalbanken.dk for towers to be chosen for future thematic coins.
Faroese banknote series – new 100-krone banknote
On 16 January 2003 Danmarks Nationalbank issued the second banknote in the new Faroese series. This was a new 100-krone banknote, which – unlike the first banknote in the new series, the 50-krone banknote, cf. the 2001 Annual Report p. 65 – also has a hologram.
The motif on the face of the banknote is a fragment of a cod, while the reverse shows Klaksvík reproduced from a watercolour by the artist Zacharias Heinesen, cf. Box 5.
|
|
