Danish krone
Danish krone dansk krone (Danish) dansk króna (Faroese) danskinut koruuni (Kalaallisut) |
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ISO 4217 Code | DKK | ||||
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User(s) | Denmark, Greenland, Faroe Islands 1 | ||||
Inflation | 1.8% (Denmark only) | ||||
Source | The World Factbook, 2006 est. | ||||
ERM | |||||
Since | 13 March 1979 | ||||
€ = | kr 7.46038 | ||||
Band | 2.25% | ||||
Subunit | |||||
1/100 | øre | ||||
Symbol | kr | ||||
Plural | kroner | ||||
øre | øre | ||||
Coins | 25, 50 øre, 1, 2, 5, 10, 20 kroner | ||||
Banknotes | 50, 100, 200, 500, 1000 kroner | ||||
Central bank | Danmarks Nationalbank | ||||
Website | www.nationalbanken.dk | ||||
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The krone is the currency of Denmark, including the autonomous provinces of Greenland and the Faroe Islands. The plural form is "kroner" and one krone is divided into 100 øre, the singular form being the same as the plural. The ISO 4217 code is DKK; the domestic abbreviation is "kr.". Occasionally, the variants DKR or Dkr are seen, but these are not official.
Contents |
History
Until the late 18th century, the krone was a denomination equal to 8 mark.[1] 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, Denmark, Norway and Sweden all decided not to change 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 krone to the British pound was introduced, reduced to 19.34 (4.8 krone = 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 krone = 1 dollar and 18 krone = 1 pound.
Faroe Islands and Greenland
In the Faroe Islands, Danish coins are used but the islands use distinct banknotes and, during World War II, had coins struck especially for use there (see Faroese króna). Although a common misconception, the Faroese króna is not an independent currency, only a separate set of banknotes with a different design.
In Greenland, distinct banknotes were issued between 1803 and 1968, together with coins between 1926 and 1964 (see Greenland rigsdaler and Greenland krone). In 2006, the governments of Denmark and Greenland announced that by 2008, distinct banknotes would be introduced once more for use in Greenland. Ordinary Danish banknotes will remain legal tender in Greenland.
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 government is still committed to converting Denmark's currency to the euro eventually.
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 and 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 substituted 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 and 2 kroner denominations were withdrawn. Cupro-nickel 10 and 25 øre coins were reintroduced in 1946, followed by aluminium-bronze 2 kroner coins the next year. In 1960, the 5 kroner coin was introduced and the production of 2 kroner coins ceased. 1 and 2 øre coins were withdrawn in 1973, 10 kroner coins were introduced in 1979. 5 and 10 øre coins were withdrawn in 1989 and are no longer legal tender. Between 1989 and 1992, 50 øre, 2 and 20 kroner coins were introduced, thus the following coins are currently in circulation:
Currently Circulated Coins | |||||||
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Value | Technical parameters | Description | |||||
Diameter | Thickness | Mass | Composition | Edge | Obverse | Reverse | |
25 øre | 17.5 mm | 1.55 mm | 2.8 g | Tin-bronze | Smooth | Crown of King Christian V | Heart (symbol of the Royal Mint) |
21.5 mm | 1.55 mm | 4.3 g | |||||
20.25 mm | 1.6 mm | 3.6 g | Cupronickel | Milled | Monogram of Queen Margrethe II | Traditional design (holed) | |
24.5 mm | 1.8 mm | 5.9 g | Interrupted milling | ||||
28.5 mm | 2 mm | 9.2 g | Milled | ||||
23.35 mm | 2.3 mm | 7 g | Aluminium bronze | Smooth | Queen Margrethe II | Coat of arms | |
27 mm | 2.35 mm | 9.3 g | Interrupted milling | ||||
These images are to scale at 2.5 pixels per millimetre, a standard for world coins. For table standards, see the coin specification table. |
Banknotes
Early krone banknotes were issued in denominations of 5, 10, 50, 100 and 500 kroner. 1 krone notes were added during the First World War. 5 kroner notes were replaced by coins in 1960. The next new denomination was not introduced until 1972, when production of 1000 kroner notes began. In 1979, the 10 kroner note was replaced by a coin and 20 kroner notes were introduced, although these have since also been replaced by coins (both are, however, still legal tender). The presently circulating banknotes are:
Value | Obverse | Reverse |
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50 kroner | Karen Blixen | Centaur from |
100 kroner | Carl Nielsen | Basilisk from |
200 kroner | Johanne Luise Heiberg | Lion from |
500 kroner | Niels Bohr | Knight fighting a dragon from |
1000 kroner | Anna and Michael Ancher | Tournament from |
The current designs of the Danish banknotes are going to be replaced between 2009 and 2012 [1]. 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.
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See also
- Banknotes of Denmark, 1972 series
- Banknotes of Denmark, 1997 series
- Scandinavian Monetary Union
- Swedish krona
- Norwegian krone
- Economy of Denmark
- Economy of Greenland
- Economy of the Faroe Islands
References
- ^ Nationalbanken. New Danish banknote series. Retrieved on 2007-01-02.
- Krause, Chester L. and Clifford Mishler (1991). Standard Catalog of World Coins: 1801-1991, 18th ed., Krause Publications. ISBN 0-87341-150-1.
- Pick, Albert (1994). Standard Catalog of World Paper Money: General Issues, Colin R. Bruce II and Neil Shafer (editors), 7th ed., Krause Publications. ISBN 0-87341-207-9.
External links
- Don's World Coin Gallery - Denmark
- Ron Wise's World Paper Money - Denmark Mirror site
- The Global History of Currencies - Denmark
- Global Financial Data data series - Denmark Krone
- Global Financial Data currency histories table ( Microsoft Excel format)
- Royal Mint of Denmark see Denmark's coin series.
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Coins | .25 · · · · · · |
Banknotes | 50 · 100 · 200 · 500 · 1000 |
Faroese banknotes | · · · · |
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Circulating | Czech koruna · Danish krone · Estonian kroon · Faroese króna · Greenlandic koruuni (from 2008 onwards) · Icelandic króna · Norwegian krone · Slovak koruna · Swedish krona |
Obsolete | Austrian Netherlands kronenthaler · Austro-Hungarian krone · Bohemian and Moravian koruna · Czechoslovak koruna · Hungarian korona · Liechtenstein krone · Yugoslav krone |
As a denomination | British crown · kronenthaler |
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Eurozone | Euro |
Northern | Danish krone · Faroese króna · Icelandic króna · Norwegian krone · Swedish krona |
Baltic | Estonian kroon · Latvian lats · Lithuanian litas |
Western | British pound · Guernsey pound · Jersey pound · Manx pound |
Central | Czech koruna · Hungarian forint · Polish złoty · Slovak koruna · Swiss franc |
Eastern | Belarusian ruble · Kazakhstani tenge · Russian ruble (Russia and Abkhazia and South Ossetia (unrecognized)) · Transnistrian ruble (unrecognized) · Ukrainian hryvnia |
Southeastern | Albanian lek · Bosnia-Herzegovina konvertibilna marka · Bulgarian lev · Croatian kuna · Macedonian denar · Moldovan leu · Romanian leu · Serbian dinar |
Mediterranean | Cypriot pound · Gibraltar pound · Maltese lira · Turkish new lira (Turkey and Northern Cyprus (unrecognized)) |
Transcaucasia | Armenian dram (Armenia and Nagorno-Karabakh (unrecognized)) · Azerbaijani manat · Georgian lari |