Danish krone


Danish krone
Danish krone
dansk krone (Danish)
donsk króna (Faroese)
Danskinut koruuni (Kalaallisut)
ISO 4217 code DKK
User(s)  Denmark
 Greenland
 Faroe Islands
1
Inflation 2.3% (Denmark only)
Source Danmarks Statistik, 2010 est.
ERM
Since 13 March 1979
= kr 7.46038
Band 2.25%
Pegged with Euro
Pegged by Faroese króna at par
Subunit
1/100 øre
Symbol kr
Plural kroner
øre øre
Coins 50 øre, 1, 2, 5, 10, 20 kroner
Banknotes 50, 100, 200, 500, 1000 kroner
Central bank Danmarks Nationalbank
Website www.nationalbanken.dk
  1. Special banknotes are issued for use on the Faroe Islands – see Faroese króna

The krone (sign: kr; code: DKK) is the official currency of the Kingdom of Denmark consisting of Denmark, the Faroe Islands and Greenland. It is subdivided into 100 øre (singular: øre).

Denmark has not introduced the euro, following a rejection by referendum in 2000, however the Danish krone is pegged closely to the euro in ERM II, the EU's exchange rate mechanism. Following the financial crisis of 2008 support began to fall, and in late 2011 support for the euro crashed in light of the escalating European sovereign debt crisis.[1]. Denmark borders one eurozone member, Germany and one EU member obliged to join the euro in the future, Sweden.

In the two self-governing insular regions, The Faroe Islands uses a localized, non-independent version of the Danish krone, known as the Faroese króna pegged with the Danish krone at par, using the Danish coin series, but have their own series of banknotes.

Greenland adopted the Act on Banknotes in Greenland in 2006 with a view to introducing separate Greenlandic banknotes. The Act entered into force on 1 June 2007. In the autumn of 2010, a new Greenlandic government indicated that it did not wish to introduce separate Greenlandic bank­notes and Danmarks Nationalbank ceased the project to develop a Greenlandic series. Still, Greenland continues to use Danish kroner.

Contents

History

Until the late 18th century, the krone was a denomination equal to 8 mark.[2] A new krone was introduced as the currency of Denmark in 1873. It replaced the Danish rigsdaler at a rate of 2 kroner = 1 rigsdaler. The krone was introduced as a result of the Scandinavian Monetary Union, which lasted until World War I. The initial parties to the monetary union were the Scandinavian countries of Sweden and Denmark, with Norway joining two years later. This placed the krone on the gold standard at a rate of 2480 kroner = 1 kilogram fine gold.

The name of the common currency was "krone" in Denmark and Norway (see Norwegian krone), and "krona" in Sweden (both names mean "crown" in English). After the dissolution of the monetary union, none of the three countries changed the names of the now separate currencies.

The Scandinavian Monetary Union came to end in 1914 when the gold standard was abandoned. Denmark returned to the gold standard in 1924 but left it permanently in 1931. Between 1940 and 1945, the krone was tied to the German Reichsmark. Following the end of the German occupation, a rate of 24 kroner to the British pound was introduced, reduced to 19.34 (4.8 kroner = 1 US dollar) in August the same year. Within the Bretton Woods System, Denmark devalued its currency with the pound in 1949 to a rate of 6.91 to the dollar. A further devaluation in 1967 resulted in rates of 7.5 kroner = 1 dollar and 18 kroner = 1 pound.

Faroe Islands and Greenland

In the Faroe Islands, Danish coins are used but the islands use distinct banknotes (see Faroese króna). During the British occupation of the islands in World War II, a shortage of small change occurred, which prompted the British to produce copies of Danish 1 øre, 2 øre, 5 øre, 10 øre, and 25 øre coins for use on the Faroe Islands, the first three in bronze, the latter two in cupronickel. This issue is identical to pre-war Danish coinage but carries the year 1942 and lacks the tiny heart identifying coins as products of the Royal Danish Mint in Copenhagen. No similar coins were issued this year in Denmark proper, as Denmark shifted to zinc issues this year. Banknotes in circulation in the Faroes were overstamped by the amt administration invalidating the notes outside of the Faroes.

The modern Faroese banknotes were introduced in the 1950s. Despite a common misconception, the Faroese króna is not an independent currency, but a separate set of DKK banknotes with a different design.

In Greenland, the colonial administration issued distinct banknotes between 1803 and 1968, together with coins between 1926 and 1964 (see Greenland rigsdaler and Greenland krone). In 2006, the governments of Denmark and the Greenland home rule authority announced that by 2008, distinct Greenlandic banknotes will be introduced. These will, like in the Faroes, have the status of a cosmetic variation of DKK banknotes.[3] However, as of 2009, they are still not available, and in 2010 the new local government cancelled this project.[4]

Due to this status, ordinary Danish banknotes are legal tender in both Greenland and the Faroe Islands, and Danish banks exchange notes issued for use in these regions 1:1 for ordinary Danish notes.

Relationship to the euro

Denmark negotiated special "opt-outs" of the Maastricht Treaty that allowed the country to preserve the krone while most other members of the European Union adopted the euro in 1999. A referendum on the currency issue held in 2000 rejected the proposed adoption of the euro. The Liberal-Conservative government of Anders Fogh Rasmussen planned another referendum on the issue in 2004, but these plans were dropped when polls showed decreasing support for the euro.

The krone is pegged to the euro via the ERM II, the European Union's exchange rate mechanism. Before the introduction of the euro, the krone was linked to the German mark, the intention being to keep the krone stable.

Coins

The coins of the krone currency are issued by the Danish National Bank. When the currency was introduced in the 1870s, coins were minted in denominations of 1, 2, 5, 10, and 25 øre; and 1, 2, 10, and 20 kroner. The 1, 2, and 5 øre were minted in bronze; the 10 and 25 øre, 1 and 2 kroner in silver; and the 10 and 20 kroner in gold. Production of gold coins ceased in 1917, followed by silver coins in 1919. Iron replaced bronze in 1918 and 1919. In 1920, cupro-nickel 10 and 25 øre were introduced, followed, in 1924, by aluminium-bronze ½, 1, and 2 krone coins.

In 1941, zinc 1, 10, and 25 øre and aluminium 2 and 5 øre coins were introduced, with zinc 2 and 5 øre following the next year. The ½ krone denomination was withdrawn due to lack of metal, and the 2 krone coin was not struck during the years of German occupation. Cupro-nickel 10 and 25 øre coins were reintroduced in 1946, followed by aluminium-bronze 2 krone coins the next year. In 1960, the 5 krone coin was introduced and the production of 2 krone coins ceased. 1 and 2 øre coins were withdrawn in 1973[5][6] , and 10 krone coins were introduced in 1979. 5 and 10 øre coins were withdrawn in 1989[5][7] and are no longer legal tender. Between 1989 and 1992, 50 øre, 2 and 20 krone coins were introduced, and in 2008 the 25 øre ceased to be legal tender.

Commemoratives & thematic coins

The coins of the programme have the same size and metal composition as the regular coins of their denomination.

The first series, 20-krone coins featuring towers in Denmark, ran between 2002 and 2007 and spawned ten different motifs. Upon selecting the towers, importance had been attached not only to display aesthetic towers, but also towers with different form, functions and from different regions of Denmark, the Faroe Islands and Greenland. The last coin depicting the Copenhagen City Hall was issued in June 2007, marking the end of the series. A second series of 20-krone coins, starting in 2007 with twelve different planned motifs and ten already released by November 2011, shows Denmark as a maritime nation in the world, featuring iconic Danish, Faroese and Greenlandic ships and like the previous series of tower coins, the series reflect various landmarks in shipbuilding in the three cointries.

In 2005, Danmarks Nationalbank issued the first in a series of five 10-kroner commemorative coins with motifs from Hans Christian Andersen's fairy tales. The motifs depicted on the coins were chosen to illustrate various aspects and themes central to the fairy tales with the fifth and final fairy tale coin inspired by The Nightingale being issued on 25 October 2007[8]. In 2007, as the fairy tale series ended, a second series of three 10-kroner commemorative coins was introduced, celebrating the International Polar Year. Featuring motifs of a polar bear, the Sirius Sledge Patrol and the Aurora Borealis, the coins accentuate scientific research in the backdrop of Greenlandic culture and geography. The third and final coin entitled 'Northern Lights' marked the completion of the series in 2009.[9]

The following denominations are currently in circulation:

Currently circulated coins
Value Technical parameters Description
Diameter Thickness Mass Composition Edge Obverse Reverse
50 øre 21.5 mm 1.55 mm 4.3 g Tin-bronze Smooth Crown of King Christian V Heart (symbol of the Royal Mint)
1 krone 20.25 mm 1.6 mm 3.6 g Cupronickel
75% Cu, 25% Ni
Milled Monogram of Queen Margrethe II Traditional design (holed)
2 kroner 24.5 mm 1.8 mm 5.9 g Interrupted milling
5 kroner 28.5 mm 2 mm 9.2 g Milled
10 kroner 23.35 mm 2.3 mm 7 g Aluminium bronze
92% Cu, 6% Al, 2% Ni
Smooth Queen Margrethe II Coat of arms
20 kroner 27 mm 2.35 mm 9.3 g Interrupted milling
For table standards, see the coin specification table.

The decision to withdraw the 25 øre coin, which went in effect on 1 October 2008, was made due to high costs of production, and a lack of purchasing power for the coin. It was possible to exchange it at any Danish bank until the 1st of October 2011.[10]

Banknotes

In 1875, the National Bank introduced denominations of 10, 50, 100, and 500 kroner, with 5 kroner following in 1898. From 1891, a number of private banks issued notes, including the Aalborg Kreditbank, the Aarhus Kreditbank, the Dansk Købmandsbank, the Esbjerg Kreditbank, the Fredrikshavn Kreditbank, the Hjørring Kreditbank, the Odense Kreditbank, the Randers Kreditbank, the Thisted Kreditbank, the Varde Kreditbank and the Vejle Kreditbank. Denominations included 10 and 25 øre, 1, 2, 5, 10, 20, 25, and 50 kroner.

In 1914, 1 krone notes were introduced due to the outbreak of the First World War and were issued until 1921. In 1945, the Allied Command issued notes for 25 øre, 1, 5, 10, 50, and 100 kroner.

5 krone notes were replaced by coins in 1960. The next new denomination was not introduced until 1972, when production of 1000 krone notes began. In 1979, the 10 krone note was replaced by a coin and 20 krone notes were introduced, although these have since also been replaced by coins (both are, however, still legal tender).

In 1997, a complete new series was issued ranging from 50 to 1000 kroner. During 2002-2005, additional security features were added.

1997 Series[11]
Image Value Dimensions Main colour Description Date of
Obverse Reverse Obverse Reverse Watermark first printing issue
[12]
[13]
[14]
[15]
50 kroner 125 × 72 mm Purple Karen Blixen Centaur from Landet Church As portrait 1999
2005
7 May 1999
25 August 2005
[16]
[17]
[18]
[19]
100 kroner 135 × 72 mm Orange Carl Nielsen Basilisk from Tømmerby Church 1999
2002
22 November 1999
27 November 2002
[20]
[21]
[22]
[23]
200 kroner 145 × 72 mm Green Johanne Luise Heiberg Lion from Viborg Cathedral 1997
2003
10 March 1997
9 April 2003
[24]

N/A

[25]

N/A

500 kroner 155 × 72 mm Blue Niels Bohr Knight fighting a dragon from Lihme Church 1997
2003
12 September 1997
24 September 2003
[26]

N/A

[27]

N/A

1000 kroner 165 × 72 mm Red Anna, Michael Ancher Tournament from Bislev Church Anna Ancher 1998
2004
18 September 1998
25 November 2004
For table standards, see the banknote specification table.

Bridge series

The current designs of the Danish banknotes are to be replaced between 2009 and 2011.[28] The new theme for the banknotes is Danish bridges. The process of designing the new banknotes was initiated in 2006 by the Danish National Bank.[29]

2009 series
Image Value Dimensions Main colour Description Date of
Obverse Reverse Obverse Reverse Watermark first printing issue
DKK 50 obverse (2009).jpg DKK 50 reverse (2009).jpg 50 kroner 125 × 72 mm Purple Sallingsund Bridge Skarpsalling vessel Denomination and viking ship from Skuldelev in Roskilde Fiord 2009 11 August 2009
DKK 100 obverse (2009).jpg DKK 100 reverse (2009).jpg 100 kroner 135 × 72 mm Orange Old Little Belt Bridge Hindsgavl dagger 2010 4 May 2010
DKK 200 obverse (2009).jpg DKK 200 reverse (2009).jpg 200 kroner 145 × 72 mm Green Knippelsbro Langstrup belt plate 2010 19 October 2010
DKK 500 obverse (2009).jpg DKK 500 reverse (2009).jpg 500 kroner 155 × 72 mm Blue Dronning Alexandrines Bro Keldby bronze pail 2011 15 February 2011
DKK 1000 obverse (2009).jpg DKK 1000 reverse (2009).jpg 1000 kroner 165 × 72 mm Red Great Belt Bridge Trundholm sun chariot 2011 24 May 2011
These images are to scale at 0.7 pixels per millimetre. For table standards, see the banknote specification table.

Exchange rates

Current DKK exchange rates
From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD SEK NOK
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD SEK NOK
From OzForex: AUD CAD CHF EUR GBP HKD JPY USD SEK NOK
From XE.com: AUD CAD CHF EUR GBP HKD JPY USD SEK NOK
From OANDA.com: AUD CAD CHF EUR GBP HKD JPY USD SEK NOK

See also

References

  1. ^ "Danskerne siger nej tak til euroen" (in Danish). Business.dk. 27 September 2011. http://www.business.dk/oekonomi/danskerne-siger-nej-tak-til-euroen. Retrieved 29 September 2011. 
  2. ^ "Global Financial Data". Global Financial Data. http://www.globalfinancialdata.com/index.php3?action=showghoc&country_name=DENMARK. Retrieved 2009-02-06. 
  3. ^ Parliament of Denmark, 2006-2007 session, law no. 42
  4. ^ http://www.nationalbanken.dk/DNUK/NotesAndCoins.nsf/side/Greenlandic_banknotes!OpenDocument
  5. ^ a b "Ugyldige mønter". Den Kgl. Mønt. http://www.kgl-moent.dk/DKM/DK/Coins.nsf/(sysPrintViewDefault)/Ugyldige_moenter_!OpenDocument&popUpWindow+CloseWindow+PrintIcon. Retrieved 2009-03-10. 
  6. ^ "1- og 2-øren forsvinder". Danmarks Nationalbank. http://www.kgl-moent.dk/DNDK/Hist.nsf/side/1-_og_2-oeren_forsvinder. Retrieved 2009-03-10. 
  7. ^ "Afskaffelsen af 25-øren". Danmarks Nationalbank. http://nationalbanken.dk/DNDK/money.nsf/side/25-oere_!OpenDocument. Retrieved 2009-03-10. 
  8. ^ http://kgl-mønt.dk/DKM/UK/Themes.nsf/side/Fairy_tale_coins_!OpenDocument
  9. ^ http://www.kgl-mønt.dk/dkm/UK/Themes.nsf/side/Polar_coins!OpenDocument
  10. ^ Nationalbanken. "Sedler og mønter: 25 øre". http://nationalbanken.dk/DNDK/money.nsf/side/25-oere_!OpenDocument. Retrieved 2008-04-07. 
  11. ^ "Nationalbanken // Notes and Coins // Web document // Denmark's banknote series". Nationalbanken.dk. 2009-02-01. http://www.nationalbanken.dk/DNUK/NotesAndCoins.nsf/side/Denmarks_banknote_series!OpenDocument. Retrieved 2009-02-06. 
  12. ^ "Banknoteworld.Com". Banknoteworld.Com. http://www.banknoteworld.com/banknotes/denmark/DenmarkP-50Kroner-(1997)_f.JPG. Retrieved 2009-02-06. 
  13. ^ [1][dead link]
  14. ^ "Banknoteworld.Com". Banknoteworld.Com. http://www.banknoteworld.com/banknotes/denmark/DenmarkP-50Kroner-(1997)_b.JPG. Retrieved 2009-02-06. 
  15. ^ [2][dead link]
  16. ^ [3][dead link]
  17. ^ [4][dead link]
  18. ^ [5][dead link]
  19. ^ [6][dead link]
  20. ^ [7][dead link]
  21. ^ "Banknoteworld.Com". Banknoteworld.Com. http://www.banknoteworld.com/banknotes/denmark/DenmarkPNew-200Kroner-(20)03-donatedtsfng_f.JPG. Retrieved 2009-02-06. 
  22. ^ [8][dead link]
  23. ^ "Banknoteworld.Com". Banknoteworld.Com. http://www.banknoteworld.com/banknotes/denmark/DenmarkPNew-200Kroner-(20)03-donatedtsfng_b.JPG. Retrieved 2009-02-06. 
  24. ^ [9][dead link]
  25. ^ [10][dead link]
  26. ^ [11][dead link]
  27. ^ [12][dead link]
  28. ^ Nationalbanken. "New Danish banknote series". http://www.nationalbanken.dk/DNUK/NotesAndCoins.nsf/side/New_Danish_banknote_series!OpenDocument. Retrieved 2007-01-02. 
  29. ^ www.banknotenews.com

External links



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