The Central Bank trades almost exclusively with other banks.
Individuals and companies cannot buy or sell foreign currency at the Central Bank or withdraw money from it. The general rule is that people go to a commercial bank or savings bank to obtain banknotes and coins or to buy or sell foreign currency. Special foreign exchange services have also been operating.
Where can I exchange foreign banknotes?
Commercial banks and savings banks in Iceland have recently been buying and selling foreign banknotes (currency exchange services have also been operating). These entities are free to choose which banknotes they buy and/or sell, but as a rule, it has been possible to buy or sell banknotes from the world's largest currency zones and Iceland’s main neighbouring countries. It should be noted, however, that commercial banks and savings banks have in recent years reduced their trading in foreign banknotes, such as various currencies in our Nordic region.
The Central Bank of Iceland neither buys nor sells foreign banknotes. People must therefore turn to the above-mentioned parties to engage in banknote transactions.
What about foreign banknotes that have expired or are no longer in circulation?
Banknote series in various countries are regularly renewed, certain banknotes are withdrawn from circulation and new banknotes with, for example, a changed design, are put into circulation instead, but often with the same value. Foreign central banks that are issuers of the banknotes announce this well in advance, and domestic parties that trade in the banknotes also communicate this information. However, it is not uncommon for people to be holding foreign banknotes that are no longer legal tender in the country in question, and banks in Iceland have stopped dealing in such banknotes. The only option may then be to exchange these banknotes at a bank in the relevant country, at the relevant country's central bank or their branches.
Information about banknotes in use in each country can be found on the websites of central banks, while the Bank for International Settlements website provides an overview of the websites of all or most central banks, see here: Overview of central bank websites.
The two thousand krona note is still valid but is being phased out.
It has been some time since the decision was made to stop putting the two thousand krónur note into circulation. It is still fully valid, but there are relatively few of these notes in circulation compared to other banknotes.