It is not a separate currency, but is rather a local issue of banknotes denominated in the Danish krone, although Danish-issued coins are still used.

The Danish krone was used in the Faroes when German forces invaded and occupied metropolitan Denmark on 9 April 1940.

On 18 December 1940, a Currency Central was established in order to monitor foreign trade and to secure the solvency of the Faroes.

[8] Danish kroner are exchanged to Faroese krónur and vice versa by the National Bank of Denmark free of charge.

While normal Danish bank notes are no longer intended as legal tender in the Faroes, they are accepted there in all situations.

People travelling from the Faroes are often advised to exchange their cash prior to embarking in order to prevent potential complications arising from this situation.

The Faroe Islands use standard Danish coinage, but the region has experienced a shortage of small currency on several occasions, leading to non-standard issues.

Siemsen, a merchant conducting business in both the Faroe Islands and Iceland, issued his own private coinage.

[9] During World War II, the Faroe Islands were separated from Denmark proper due to the occupations by the United Kingdom and Germany respectively.

The Faroese króna has no official ISO 4217 code, so DKK is used for all credit card statements for visitors and international transfers of krónur (unless some other currency is used).

Faroese banknotes are no longer available to collectors from Danmarks Nationalbank since their web shop was closed at the end of 2023.