Norwegian krone
The krone (Norwegian: [ˈkrûːnə], abbreviation: kr (also NKr for distinction); code: NOK), plural kroner, is the currency of the Kingdom of Norway (including overseas territories and dependencies). It was traditionally known as the Norwegian crown in English; however, this has fallen out of common usage. It is nominally subdivided into 100 øre, although the last coins denominated in øre were withdrawn in 2012.
| Norsk krone (Norwegian) | |
|---|---|
100 kroner banknote obverse | |
| ISO 4217 | |
| Unit | |
| Plural | kroner |
| Symbol | kr |
| Denominations | |
| Subunit | |
| 1⁄100 | øre |
| Plural | |
| øre | øre |
| Banknotes | |
| Freq. used | 50, 100, 200, 500 kroner |
| Rarely used | 1000 kroner |
| Coins | 1, 5, 10, 20 kroner |
| Demographics | |
| Date of introduction | 1875 |
| Replaced | Norwegian rigsdaler |
| User(s) | Kingdom of Norway |
| Issuance | |
| Central bank | Norges Bank |
| Website | www |
| Valuation | |
| Inflation | 5.4% (April 2022) |
| Source | Norges bank |
The krone was the thirteenth-most-traded currency in the world by value in April 2010, down three positions from 2007.[1]
The Norwegian krone is also informally accepted in many shops in Sweden and Finland that are close to the Norwegian border, and also in some shops in the Danish ferry ports of Hirtshals and Frederikshavn. Norwegians spent 14.1 billion NOK on border shopping in 2015 compared to 10.5 billion NOK spent in 2010. Border shopping is a fairly common practice amongst Norwegians, though it is seldom done on impulse. Money is spent mainly on food articles, alcohol, and tobacco, in that order, usually in bulk or large quantities. This is due to considerably higher taxes and fees on tobacco and alcohol purchased domestically in Norway.[2][3]
History edit
The krone was introduced in 1875, replacing the Norwegian speciedaler/spesidaler at a rate of 4 kroner = 1 speciedaler. In doing so, Norway joined the Scandinavian Monetary Union, which had been established in 1873. The Scandinavian currencies were mutually exchangeable at par until 1914 with the suspension of the gold standard due to World War I. After this date, the currencies of Denmark, Norway, and Sweden ceased to be mutually equivalent to each other.
Within the Scandinavian Monetary Union, the krone was on a gold standard of 2,480 kroner = 1 kilogram of pure gold (1 krone = 403.226 milligrams of gold). The gold standard was suspended from 1914 to 1916 and from 1920 to 1928, and in 1931 it was permanently suspended. In 1933 the krone was pegged to the pound sterling at 1 pound = 19.9 kroner, and in 1939 the krone was pegged to the U.S. dollar at $1 = 4.4 kroner.[4]
During the German occupation (1940–1945) in the Second World War, the krone was initially pegged to the Reichsmark at a rate of 1 krone = 0.6 Reichsmark, later reduced to 0.57.[citation needed] After the war, a peg of 1 pound = 20 kroner was established in 1946, equivalent to US$1 = 4.963 kroner before the 1949 devaluation of sterling revised it to US$1 = 7.142 kroner.[4]
In December 1992, the Central Bank of Norway abandoned the fixed exchange rate system in favor of floating exchange rates (managed float) due to the heavy speculation against the Norwegian currency in the early 1990s, which lost[clarification needed] the central bank around two billion kroner in defensive purchases of the NOK through the usage of foreign currency reserves for a relatively short period of time.
Summary of denominations issued edit
| Denomination | Notes | Coins | ||||
|---|---|---|---|---|---|---|
| Printed | Invalid | Comments | Minted | Invalid | Comments | |
| 1 øre | — | 1876–1972 | 1988 | Bronze, iron 1918–1921 & 1941–1945 | ||
| 2 øre | — | 1876–1972 | 1988 | Bronze, iron 1917–1920 & 1943–1945 | ||
| 5 øre | — | 1875–1982 | 1988 | Bronze, iron 1917–1920 & 1941–1945 | ||
| 10 øre | — | 1874–1991 | 2003 | Silver 1874–1919, cupro-nickel 1920–92 (holed 1924–51), zinc 1941–1945 | ||
| 25 øre | — | 1876–1982 | 1988 | Silver 1876–1919, cupro-nickel 1921–82 (holed 1921–50), zinc 1943–1945 | ||
| 50 øre | — | 1874–2012 | 2012 | Silver 1874–1919, cupro-nickel 1920–96 (holed 1920–49), zinc 1941–1945, bronze 1996–2012 | ||
| 1 krone | 1917–1925 1940–1950 | 1926 1999 | Wartime "coin notes" | 1875– | — | Silver 1875–1917, cupro-nickel 1925– (holed 1925–1951, 1997–) |
| 2 kroner | 1918–1925 1940–1950 | 1926 1999 | Wartime "coin notes" | 1876–1917 | 1922 | Silver 1878–1917 |
| 5 kroner | 1877–1963 | 1999 | Replaced by coin 1963 | 1963– | — | Cupro-nickel (holed 1998–) |
| 10 kroner | 1877–1984 | 1999 | Replaced by coin 1984 | 1983– | — | Nickel-brass |
| 20 kroner | — | 1994– | — | Nickel-brass | ||
| 50 kroner | 1877– | — | — | |||
| 100 kroner | 1877– | — | — | |||
| 200 kroner | 1994– | — | — | |||
| 500 kroner | 1877– | — | — | |||
| 1000 kroner | 1877– | — | — | |||
Coins edit
In 1875, coins were introduced (some dated 1874) in denominations of 10 and 50 øre and 1 and 10 kroner. These coins also bore the denomination in the previous currency, as 3, 15, and 30 skillings and 2+1⁄2 specidaler. Between 1875 and 1878, the new coinage was introduced in full, in denominations of 1, 2, 5, 10, 25, and 50 øre and 1, 2, and 10 kroner. The 1, 2, and 5 øre were struck in bronze; the 10, 25, and 50 øre and 1 and 2 kroner, in silver; and the 10 and 20 kroner, in gold.
The last gold coins were issued in 1910; silver was replaced by cupro-nickel in 1920. Between 1917 and 1921, iron temporarily replaced bronze. 1917 also saw the last issuance of 2 kroner coins. During the German occupation of Norway in the Second World War, zinc was used in place of cupro-nickel in 10, 25, and 50 øre coins and production of the 1 krone piece was suspended.
- The obverse of a 1940 Norwegian krone.
- The reverse of the 1940 krone.
In 1963, 5 kroner coins were introduced. Production of 1 and 2 øre coins ceased in 1972. The following year, the size of the 5-øre coin was reduced; production of the denomination ceased in 1982, along with the minting of the 25 øre. Ten-kroner coins were introduced in 1983. In 1992, the last 10 øre coins were minted.
Between 1994 and 1998, a new coinage was introduced, consisting of 50 øre, 1, 5, 10, and 20 kroner. These are the only coins that are currently legal tender, with the exception of the 50 øre coin which was withdrawn on 1 May 2012. It was withdrawn because it was no longer circulating as an ordinary coin used for payment.[10] However, banks in Norway still exchanged 50 øre coins for higher values until 2022.
| Currently circulating coins | ||||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| Image | Value | Technical parameters | Description | Issued since | ||||||
| Obverse | Reverse | Diameter | Thickness | Mass | Composition | Edge | Obverse | Reverse | ||
| 1 krone | 21 mm | 1.7 mm | 4.35 g | Cupronickel 75% Cu, 25% Ni | Smooth | Harald V's monogram | a fowl | 1997 | ||
| 5 kroner | 26 mm | 2 mm | 7.85 g | Milled | St. Olav's Order | acanthi leaves | 1998 | |||
| 10 kroner | 24 mm | 2 mm | 6.8 g | 81% Cu, 10% Zn, 9% Ni | Interrupted milling | Harald V | stave church roof | 1995 | ||
| 20 kroner | 27.5 mm | 2.2 mm | 9.9 g | Smooth | Viking ship | 1994 | ||||
| For table standards, see the coin specification table. | ||||||||||
The 10 and 20 kroner coins carry the effigy of the current monarch. Previously the 1 and 5 kroner coins also carried the royal effigy, but now these denominations are decorated only with stylistic royal or national symbols. The royal motto of the monarch (King Harald's motto is Alt for Norge, meaning "Everything for Norway") is also inscribed on the 10 kroner coin.
Coins and banknotes of the Norwegian krone are distributed by the Central Bank of Norway.
Up to 25 coins of any single denomination is considered tvungent betalingsmiddel—a legally recognized method of payment, in which the intended recipient can not refuse payment, according to Norwegian law.[11]
Use of 10 Syrian pound coins in Norway edit
The characteristics of the ten Syrian pound (LS 10) coin have been found to so closely resemble the Norwegian 20 kroner (NKr 20) coin that it can fool vending machines, coins-to-cash machines, arcade machines, and any other coin-operated, automated service machine in the country. Machines are unable to tell the coins apart, owing to their almost identical weight and size.
As of mid-February 2017, LS 10 was worth NKr 0.39, making the 20-kroner coin 51.5 times more valuable than the 10-pound coin. While not easy to find in Norway, the Syrian coins are still used in automated machines there with such frequency that Posten Norge, the Norwegian postal service, decided to close many of their coins-to-cash machines on 18 February 2006, with plans to develop a system able to differentiate between the two coins. In the summer of 2005, a Norwegian man was sentenced to 30 day suspended sentence, for having used Syrian coins in arcade machines in the municipality of Bærum.[12]
Banknotes edit
In 1877, Norges Bank introduced notes for 5, 10, 50, 100, 500, and 1000 kroner. In 1917, 1 krone notes were issued, and 2 kroner notes were issued between 1918 and 1922. Because of metal shortages, 1 and 2 kroner notes were again issued between 1940 and 1950. In 1963, 5 kroner notes were replaced by coins, with the same happening to the 10 kroner notes in 1984. Two hundred kroner notes were introduced in 1994.
| Image | Value | Dimensions (millimeters) | Main Color | Design | First issue | ||||
|---|---|---|---|---|---|---|---|---|---|
| Obverse | Reverse | Obverse | Reverse | ||||||
| 50 kr | 126 × 70 | Green | Utvær Lighthouse | Stylized lighthouse beacon and Karlsvogna (Big Dipper) | 2018 | ||||
| 100 kr | 133 × 70 | Red | Gokstad ship | Stylized Container ship, a globe, and Orion | 2017 | ||||
| 200 kr | 140 × 70 | Blue | Codfish | Stylized fishing boat, a fishing net, and a beacon | 2017 | ||||
| 500 kr | 147 × 70 | Orange | Rescue vessel RS 14 Stavanger | Stylized oil platform, gas pipeline networks from the North Sea, and an ammonite | 2018 | ||||
| 1000 kr | 154 × 70 | Purple | Wave in the sea | Stylized horizon and water molecules | 2019 | ||||
| These images are to scale at 0.7 pixel per millimetre. For table standards, see the banknote specification table. | |||||||||
Exchange rates edit
| Rank | Currency | Code | Symbol | Proportion of daily volume | Change (2019–2022) | |
|---|---|---|---|---|---|---|
| April 2019 | April 2022 | |||||
| 1 | U.S. dollar | USD | US$ | 88.3% | 88.5% | 0.2pp |
| 2 | Euro | EUR | € | 32.3% | 30.5% | 1.8pp |
| 3 | Japanese yen | JPY | ¥ / 円 | 16.8% | 16.7% | 0.1pp |
| 4 | Sterling | GBP | £ | 12.8% | 12.9% | 0.1pp |
| 5 | Renminbi | CNY | ¥ / 元 | 4.3% | 7.0% | 2.7pp |
| 6 | Australian dollar | AUD | A$ | 6.8% | 6.4% | 0.4pp |
| 7 | Canadian dollar | CAD | C$ | 5.0% | 6.2% | 1.2pp |
| 8 | Swiss franc | CHF | CHF | 4.9% | 5.2% | 0.3pp |
| 9 | Hong Kong dollar | HKD | HK$ | 3.5% | 2.6% | 0.9pp |
| 10 | Singapore dollar | SGD | S$ | 1.8% | 2.4% | 0.6pp |
| 11 | Swedish krona | SEK | kr | 2.0% | 2.2% | 0.2pp |
| 12 | South Korean won | KRW | ₩ / 원 | 2.0% | 1.9% | 0.1pp |
| 13 | Norwegian krone | NOK | kr | 1.8% | 1.7% | 0.1pp |
| 14 | New Zealand dollar | NZD | NZ$ | 2.1% | 1.7% | 0.4pp |
| 15 | Indian rupee | INR | ₹ | 1.7% | 1.6% | 0.1pp |
| 16 | Mexican peso | MXN | MX$ | 1.7% | 1.5% | 0.2pp |
| 17 | New Taiwan dollar | TWD | NT$ | 0.9% | 1.1% | 0.2pp |
| 18 | South African rand | ZAR | R | 1.1% | 1.0% | 0.1pp |
| 19 | Brazilian real | BRL | R$ | 1.1% | 0.9% | 0.2pp |
| 20 | Danish krone | DKK | kr | 0.6% | 0.7% | 0.1pp |
| 21 | Polish złoty | PLN | zł | 0.6% | 0.7% | 0.1pp |
| 22 | Thai baht | THB | ฿ | 0.5% | 0.4% | 0.1pp |
| 23 | Israeli new shekel | ILS | ₪ | 0.3% | 0.4% | 0.1pp |
| 24 | Indonesian rupiah | IDR | Rp | 0.4% | 0.4% | |
| 25 | Czech koruna | CZK | Kč | 0.4% | 0.4% | |
| 26 | UAE dirham | AED | د.إ | 0.2% | 0.4% | 0.2pp |
| 27 | Turkish lira | TRY | ₺ | 1.1% | 0.4% | 0.7pp |
| 28 | Hungarian forint | HUF | Ft | 0.4% | 0.3% | 0.1pp |
| 29 | Chilean peso | CLP | CLP$ | 0.3% | 0.3% | |
| 30 | Saudi riyal | SAR | ﷼ | 0.2% | 0.2% | |
| 31 | Philippine peso | PHP | ₱ | 0.3% | 0.2% | 0.1pp |
| 32 | Malaysian ringgit | MYR | RM | 0.2% | 0.2% | |
| 33 | Colombian peso | COP | COL$ | 0.2% | 0.2% | |
| 34 | Russian ruble | RUB | ₽ | 1.1% | 0.2% | 0.9pp |
| 35 | Romanian leu | RON | L | 0.1% | 0.1% | |
| 36 | Peruvian sol | PEN | S/ | 0.1% | 0.1% | |
| 37 | Bahraini dinar | BHD | .د.ب | 0.0% | 0.0% | |
| 38 | Bulgarian lev | BGN | BGN | 0.0% | 0.0% | |
| 39 | Argentine peso | ARS | ARG$ | 0.1% | 0.0% | 0.1pp |
| … | Other | 1.8% | 2.3% | 0.5pp | ||
| Total[a] | 200.0% | 200.0% | ||||
The value of the Norwegian krone compared to other currencies varies considerably from one year to another, mainly based on changes in oil prices and interest rates. In 2002 the Norwegian krone grew to record high levels against the United States dollar and the euro. On 2 January 2002, 100 kroner were worth US$11.14 ($1 = 8.98 kroner). In July 2002, the krone hit a high at 100 kroner = $13.7 ($1 = 7.36 kroner). In addition to the high level of interest, which increased further on 4 July 2002, to 7 percent, the price of oil was high. At the time Norway was the world's third largest oil exporter.
In 2005, oil prices reached record levels of more than 60 dollars per barrel. Although interest rates had decreased to around 2 percent, the Norwegian krone grew even stronger.
However, in late 2007 and early 2008, the dollar suffered a steady depreciation against all other major currencies. The Norwegian krone was gaining value at the same time; as a result, the krone became stronger than ever compared to the dollar, making the dollar worth about 5 kroner in April 2008. By October 2008, the dollar had recovered and was worth approximately 7 kroner. Following 2009, the krone once again saw strong growth, making the dollar worth about 5.8 kroner as of the beginning of 2010. Since then, the dollar has gone up further and as of October 2019 was worth about 9 kroner. During the COVID-19 pandemic, the krone fell heavily, making one dollar cost 12.00 kroner on 19 March 2020.
| From Google Finance: | AUD CAD CHF CNY EUR GBP HKD JPY USD DKK SEK |
| From Yahoo! Finance: | AUD CAD CHF CNY EUR GBP HKD JPY USD DKK SEK |
| From XE.com: | AUD CAD CHF CNY EUR GBP HKD JPY USD DKK SEK |
| From OANDA: | AUD CAD CHF CNY EUR GBP HKD JPY USD DKK SEK |
See also edit
Notes edit
- ^ The total sum is 200% because each currency trade is counted twice: once for the currency being bought and once for the one being sold. The percentages above represent the proportion of all trades involving a given currency, regardless of which side of the transaction it is on. For example, the US dollar is bought or sold in 88% of all currency trades, while the euro is bought or sold in 31% of all trades.
References edit
- ^ Bank for International Settlements: Triennial Central Bank Survey p. 12
- ^ "Mest mat i handlekurven" (in Norwegian Bokmål). ssb.no. 12 July 2011. Retrieved 12 April 2016.
- ^ "NOK 14.1 billion in cross border trade". ssb.no. Retrieved 12 April 2016.
- ^ a b "History of Norges Bank".
- ^ "Notes and coins". norges-bank.no.
- ^ "Kroner og øre". dokpro.uio.no.
- ^ "Felles nettbutikk for Mynt & Seddel og Skanfil". skanfil.no.
- ^ "Numisma Mynthandel". numisma.no.
- ^ "50-øringen snart historie – Lovdata". lovdata.no.
- ^ "50-øre coin to be withdrawn in 2012".
- ^ Aas, Magnus Lutnæs (9 August 2014). "Forsikringsselskap utbetalte forlik på 130 000 kroner i småmynt". dagbladet.no.
- ^ Andersen, Øystein (18 February 2006). "Myntsvindlere herjer i Oslo". Dagbladet (in Norwegian). DB Medialab AS. Retrieved 8 March 2008.
- ^ Triennial Central Bank Survey Foreign exchange turnover in April 2022 (PDF) (Report). Bank for International Settlements. 27 October 2022. p. 12. (PDF) from the original on 27 October 2022.
External links edit
- Factors that influence the krone exchange rate, information from Norges Bank in 2000.
- The banknotes of Norway (in English and German)
- Official exchange rates in Norway (in Norwegian and English)