Banknotes and coin
Like most central banks, the Central Bank of
A total of five denominations of notes and five denominations of coins are valid as legal tender in
The following legal tender is valid in
The notes were designed by Kristín Þorkelsdóttir, with Stephen A. Fairbairn. The coins were designed by Þröstur Magnússon. The notes carry the facsimile signature of Governors of the Central Bank. All notes are watermarked with a portrait of Jón Sigurðsson (1811-1879, former statesman).
Notes and coin are a claim on value and serve as a vehicle for trading. Money therefore remains a vital element of the modern economy, even though other payment forms have evolved. Money is said to perform a triple function. It serves as a medium of payment, i.e. enables trading to take place. It is also a medium of storage, i.e. valuables can be kept in monetary form. Finally, money is a unit of measurement, i.e. it measures the value of things.