Banknotes and Coins
Upgrading of the banknote series continued in 2003 when the 200- and 500-krone banknotes were given the two new security features – a hologram and fluorescent colours.
In August 2003 Danmarks Nationalbank issued the 20-krone coin with a new design on the reverse.
Two new thematic coins were issued in 2003 with motifs of the dragon-tail spire of the old Copenhagen Stock Exchange, Børsen, and Christiansborg Palace Tower, respectively.
Banknotes and coins in circulation
At the end of 2003 the banknotes in circulation totalled kr. 44.4 billion, representing an increase of 4.3 per cent from 2002. This growth was slightly lower than in 2001 but significantly higher than the growth in banknotes in circulation in 2002 of only 0.3 per cent.
The use of the banknote denominations varies considerably over the year, cf. Chart 24. In December the use of all denominations is generally high, and during the summer months the circulation of the three smallest denominations increases.
| Circulation of banknotes |
Chart 24
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The use of the 200-krone banknote has increased steadily since it was first issued in 1997, cf. Chart 25. The 200-krone banknote accounts for approximately 12 per cent of the number of banknotes in circulation. The 200-krone banknote has to some extent crowded out the 100-krone banknote, as each 200-krone banknote issued has replaced one 100-krone banknote in circulation. This is partly due to the fact that the 200-krone banknote is used in Danish ATMs.
| Share of total banknotes in circulation |
Chart 25
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Coins in circulation increased by 4.8 per cent to kr. 4.6 billion in 2003. The circulation of the 20-krone coin accounted for the strongest increase.
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.
Upgrading of banknotes
In 2002 Danmarks Nationalbank began to upgrade the banknote series by issuing an upgraded 100-krone banknote with two new security features – a hologram and fluorescent colours. The hologram "comes to life" when the banknote is tilted, and the fluorescent colours light up under ultra-violet light. In 2003 the 200- and 500-krone banknotes also were upgraded with the new security features, cf. Box 4. The remaining banknotes – the 50- and 1,000-krone banknotes – are expected to be upgraded in the coming year. Together with the existing security features, the new security features will make Danish banknotes even harder to counterfeit.
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Box 4
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Counterfeit banknotes
The number of counterfeit banknotes found in circulation in 2003 was equivalent to the number found in 2002. A total of 1,239 counterfeit banknotes were found in circulation, equivalent to 9.0 counterfeit banknotes for each million genuine banknotes. The incidence of counterfeiting in Denmark in 2003 compares to the incidence in Norway, Sweden and Finland, but it is lower than in Germany, cf. Chart 26. No attempts at counterfeiting the new security features have been found.
Over the last decade the growing potential to counterfeit banknotes by using scanners, computers and printers have induced a number of central banks to jointly establish a system to make it difficult to copy banknotes. This Counterfeit Deterrence System, CDS, is incorporated in a number of products of leading hardware and software suppliers. When these products identify banknotes, copying is blocked.
Counterfeiting, attempted counterfeiting, or aiding and abetting counterfeiters, are serious offences liable for a maximum penalty of 12 years. Even counterfeiting a few banknotes normally entail an unconditional prison sentence.
20-krone coin with new reverse
In August 2003 Danmarks Nationalbank issued the 20-krone coin with a new design on the reverse. The small national coat of arms consists of three lions and nine hearts under a crown, where the lions are more distinct in the new design. The crown is simpler, but still has fine details. It now rests on four oak leaves. The oak leaves emphasise the connection between the lions and the crown. The new design simplifies the reverse and creates a stylistic relation between the obverse and reverse sides of the coin, cf. Box 5.
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Box 5
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The reverse is the work of the sculptor Professor Mogens Møller, who also designed the portrait of Queen Margrethe on the 10- and 20-krone coins.
From 2004 the 10-krone coin will also be minted with the new reverse.
Thematic coins: Børsen's dragon-tail spire and Christiansborg Palace Tower
Two new coins in the series of thematic coins that share the common motif of towers were put into circulation in 2003. The motifs were the dragon-tail spire of the old Copenhagen Stock Exchange, Børsen, with four intertwined dragon tails, and the Christiansborg Palace Tower decorated with flags, cf. Box 6. The sculptor Karin Lorentzen designed the relief of Børsen's dragon-tail spire and the Faroese sculptor Hans Pauli Olsen was responsible for the relief of Christiansborg Palace Tower.
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Box 6
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Both thematic coins are minted in an edition of approximately 1 million coins and are of the same alloy and size as the ordinary 20-krone coin in circulation. The obverse of the coin shows the portrait of Queen Margrethe by the sculptor Professor Mogens Møller.
In 2003 Danmarks Nationalbank invited the public to submit suggestions for future tower motifs. The tower motifs for the future coins will be chosen from among the many suggestions.
Faroese banknote series
In January 2003 Danmarks Nationalbank issued the second banknote in the new Faroese series, cf. Box 7. This was a new 100-krone banknote, which – unlike the first banknote in the new series, the 50-krone banknote – also has a hologram. The primary motifs on the Faroese banknote series are fragments of Faroese animals, and the motif on the face of the 100-krone banknote is the fragment of a cod. The reverse of the banknote shows Klaksvík reproduced from a watercolour by the Faroese artist Zacharias Heinesen.
In January 2004 a Faroese 200-krone banknote was issued. The 200-krone banknote is a new denomination in the Faroese banknote series. It is issued because the denominations and sizes of the Faroese banknotes have to be in line with the Danish banknote series. On the face of the 200-krone banknote is a Ghost Moth, Hepialus humilier. On the reverse is a view of Tindhólmur near Vágar also reproduced from a watercolour by Zacharias Heinesen.
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Box 7
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