The Icelandic Króna became a separate currency from the Scandinavian Krona after dissolution of the Scandinavian Monetary Union at World War I and after gaining sovereignty from Denmark in 1918. Circulation of the Icelandic Króna is since 1961 controlled by Seđlabanki Íslands, the Central Bank of Iceland. In 1980 the Icelandic Króna was revalued, with 100 old krónur being worth 1 new Króna. Technically the Króna is composed of 100 aurar (singular eyrir), although in practice coins of less than 1 Króna have not circulated for many years.
As of 2003, the following notes and coins (issued since 1980) are legal tender:
In September 2002 the Icelandic Prime Minister signed two regulations, saying that all monetary amounts on invoices and financial claims should be stated and paid in whole krónas only, and that coins of less value than one króna should be recalled from circulation. As of October 1st 2003, Icelandic banks no longer accept the 5, 10 and 50 aurar coins.