February 2, 2017 – ‘Although the volume of cash in circulation remains high in Denmark, demand for new banknotes and coins has been falling for some years, and Danmarks Nationalbank does not expect the trend to reverse. … All in all, this means that production of banknotes and coins at Danmarks Nationalbank is not economical and will not be economical in the future. Consequently, Danmarks Nationalbank has decided to initiate a process to discontinue internal printing of banknotes and minting of coins during 2016. Like a number of other central banks, Danmarks Nationalbank will outsource these functions to external service providers. This decision is expected to yield total savings of Kr 100 million until 2020.’
With these words, the National Bank of Denmark announced its decision on 20 October 2014 to let go of a tradition that harks back more than 1,000 years, by terminating the production of coins in the country’s own Mint. The Mint came under the control of the Danish National Bank as late as 1975, having previously been controlled by the Danish Government.
As recently as 2011, it was decided to move the activities of the Danish Mint from its location in Brondby to the premises of the National Bank in Havnegade, where the country’s banknotes were already being produced. It was hoped that this amalgamation would make it possible to make synergies and thus save costs. The relocation was scheduled for the first quarter of 2012.
In 2012, the relocation actually took place, and the ‘Banknote Printing Works’ was renamed ‘Banknote Printing Works and The Royal Danish Mint’, effective 1 January 2012. Roughly one year later, the board of directors of Danmarks Nationalbank decided to stop the production of banknotes and abolish the Mint. Principally, it was the fact that Denmark’s need for new coins and banknotes was in decline and that, by abolishing the production of these, savings could be made.
On 19 May 2016, the National Bank announced that the Danish crowns were to be produced by the Mint of Finland, on the basis of a two-year contract. The ultimate reason for this decision was that the Finnish Mint had submitted the most inexpensive offer. The National Bank, the press release goes on to emphasise, did not only consider the price an important factor but also other criteria such as quality and safety.
In 2012 CoinsWeekly published an article of Hans Denkov on the merging of Danish banknote and coin production.
The Royal Danish Mint is now a web-shop for selling Danish coins. Nevertheless it still states that all Danish coins are produced by the Royal Danish Mint.
This article was first published in Mint News Quarterly 03 / 2016. Mint News Quarterly is issued by Currency News in association with Monea. Editor is Ursula Kampmann.