Banknotes and Coins
The circulation of banknotes and coins increased by 4.7 per cent in 2004 to a total of kr. 51.4 billion at year-end.
In 2004 Danmarks Nationalbank introduced a new, more secure 1,000-krone banknote and two new Faroese banknotes; a 200-krone banknote and a 500-krone banknote.
Danmarks Nationalbank marked the royal wedding by issuing a commemorative coin in two versions; a 20-krone coin and a 200-krone coin.
In the series of thematic coins with tower motifs, two new coins were issued in 2004 and one more in January 2005. The motifs are the Goose Tower in Vordingborg, Svaneke Water Tower and the tower of Landet Church on the island of Tåsinge.
The value of banknotes and coins in circulation was kr. 51.4 billion[1] at end-2004. This is an increase by 4.7 per cent from the preceding year. The volume of cash in circulation has been increasing for the last many years. This is e.g. attributable to economic growth and rising private consumption, cf. Chart 25.[2]Danmarks Nationalbank supplies banknotes and coins to match society's demand.
The circulation of banknotes rose by 4.6 per cent during the year and totalled kr. 46.5 billion at end-2004. Especially the 500-krone and 1,000-krone banknotes are used more. The 100-krone banknote has to some extent been superseded by the 200-krone banknote, partly because the 200-krone banknotes are used in most Danish ATMs. The value of coins in circulation increased by 5.7 per cent to a total of kr. 4.9 billion at end-2004. This is primarily due to an increased circulation of especially 20-krone coins.
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. The circulation is covered by other assets.
A NEW, MORE SECURE 1,000-KRONE BANKNOTE
In November 2004, Danmarks Nationalbank issued a new and more secure 1,000-krone banknote. The new features on the banknote are a hologram and fluorescent colours that make it more difficult to counterfeit. The new security features are illustrated in Box 5. The motifs on the 1,000-krone banknote are unchanged, and the old 1,000-krone banknotes remain legal tender, but will be gradually withdrawn from circulation.
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Box 5
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The new, more secure 1,000-krone banknote is part of the ongoing upgrading of Danish banknotes commenced by Danmarks Nationalbank in November 2002. Only the 50-krone banknote has not yet been upgraded with a hologram and fluorescent colours. An upgraded 50-krone banknote will be issued in the summer of 2005.
FAROESE BANKNOTE SERIES
In 2004 Danmarks Nationalbank issued two new Faroese banknotes; a 200-krone banknote and a 500-krone banknote. The two banknotes arethethirdandfourth,respectively,ofthefive banknotes in the new
Faroese banknote series introduced in 2001. The primary motifs on the new banknotes are fragments of Faroese animals, while the motifs on the reverse are reproductions of watercolours of Faroese landscapes by Zacharias Heinesen.
The face of the 200-krone banknote depicts a ghost moth, while the reverse shows Tindhólmur near Vágar. The motif on the face of the 500-krone banknote is a shore crab. The reverse shows the sound and the village of Hvannasund.
The new Faroese banknote series will be complete in the 2nd half of 2005, when a new Faroese 1,000-krone banknote is put into circulation. The banknote series is depicted in Box 6.
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Box 6
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COUNTERFEIT BANKNOTES
In 2004, 1,472 counterfeit Danish banknotes were removed from circulation, including a number of relatively genuine-looking counterfeit 100-krone banknotes. Counterfeit banknotes are typically produced on ordinary printers, but these counterfeit 100-krone banknotes had been handled in a printing press, and an attempt had also been made to counterfeit the new security features, i.e. the hologram and the fluorescent colours.
In 2004 the 100-krone and 500-krone banknotes were still the banknotes in circulation most often counterfeited, cf. Chart 26. A substantial rise in the number of counterfeit 50-krone banknotes was also seen in 2004, mainly as a result of one single case. The number of counterfeit Danish banknotes in circulation has increased from approximately 700 counterfeitbanknotesayearinthelate1990sto more than 1,000 in recent years.[3]
| COUNTERFEIT BANKNOTES FOUND IN CIRCULATION |
Chart 26
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USE OF BANKNOTES AS ILLUSTRATIONS
In 2004 Danmarks Nationalbank published a new folder with guidelines for reproduction of banknote images on the Internet and in advertisements, publications, etc. The folder is aimed at professionals in the graphics industry and replaced the previous edition from 1997. The folder text is available at www.nationalbanken.dk under Notes and coins.
COMMEMORATIVE COIN TO MARK THE ROYAL WEDDING
To mark the wedding of Crown Prince Frederik and Miss Mary Donaldson, Danmarks Nationalbank issued a commemorative coin in two versions; a 20-krone coin and a 200-krone coin. The coins were put into circulation on 10 May 2004. The 20-krone coin is of the same size and alloy as the ordinary 20-krone coin in circulation and was issued in an edition of 1.2 million. The 200-krone coin is somewhat larger and was minted in fine silver in an edition of 125,000, cf. Box 7.
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Box 7
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The reverse of the coins shows a twin portrait of the couple, designed by the sculptor Karin Lorentzen. The obverse of the coins bears a profile of the Queen. This portrait is by the sculptor, Professor Mogens Møller and has been used since 2001.
THEMATIC COINS
The fourth and fifth coins in the series of thematic coins with towers as the common theme were put into circulation in 2004. The motifs on the reverse of the coins are the Goose Tower in Vordingborg and Svaneke Water Tower, cf. Box 8. The sculptor Tina Maria Nielsen designed the Goose Tower motif, while the sculptor Professor Morten Stræde is the artist behind the Svaneke Water Tower motif. The sixth coin in the tower series was issued in January 2005. The motif on the reverse of the coin is the tower of Landet Church on the island of Tåsinge, cf. Box 8. The sculptor Øivind Nygaard is the artist behind the motif.
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Box 8
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The tower coins are issued as 20-krone coins in an edition of 1.2 million. The obverse of the tower coins shows a portrait of Queen Margrethe.
A new series of thematic coins in the pipeline
To mark the bicentenary of Hans Christian Andersen Danmarks Nationalbank is issuing a new series of thematic 10-krone coins with motifs from the fairy tales. The first coin in this series is issued on 31 March 2005, immediately prior to the bicentenary of the birth of Hans Christian Andersen on 2 April 2005. Its motif is taken from the fairy tale The Ugly Duckling. The Hans Christian Andersen coins will also be minted in gold and fine silver, cf. the press release on page 148.
THE 2004 COIN SET
The Royal Mint's 2004 Coin Set was issued in a new design and in two different versions, an ordinary coin set and an extra fine coin set, cf. Box 9. The coins in the extra fine version are minted in the finest quality, known as proof quality.
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Box 9
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Both coin sets include a medal. The medal, depicting the Battle of Køge Bay, is a copy of the largest Danish medal ever minted by The Royal Mint.
The proof edition and the ordinary edition were minted in editions of 3,000 and 33,000, respectively.
[1] As in Tables 2 and 3 on page 174, the circulation is stated exclusive of commemorative coins, the circulation of Faroese banknotes and certain older banknotes and coins, and therefore deviates from the figure stated on Danmarks Nationalbank's balance sheet.
[2] The development in cash in circulation around the millennium rollover is described in Danmarks Nationalbank, Report and Accounts, 1999 and Danmarks Nationalbank, Report and Accounts, 2000.
[3] For more information on counterfeit Danish banknotes, see article by Maria Carlsen and Johanne Dinesen Riishøj, Counterfeit Banknotes, Danmarks Nationalbank, Monetary Review, 3rd Quarter 2004