Norwegian krone

Krone

krone (Norwegian)
100 kroner banknote obverse
ISO 4217
Code	NOK (578)
Subunit	0.01
Unit
Plural	kroner
Symbol	kr‎
Denominations
Subunit
1⁄100	øre
Plural
øre	øre
Banknotes
Freq. used	50, 100, 200, 500, 1,000 kroner
Coins
Freq. used	1, 5, 10, 20 kroner
Demographics
Date of introduction	1875;147 years ago (1875)
Replaced	Norwegian rigsdaler
User(s)	Kingdom of Norway
Issuance
Central bank	Norges Bank
Website	www.norges-bank.no
Valuation
Inflation	5.4% (April 2022)
Source	Norges bank

The krone ( [ˈkrûːnə] , abbreviation: kr (also NKr for distinction); code: NOK), plural kroner, is currency of the Kingdom of Norway (including Svalbard). Traditionally known as the Norwegian crown in English. It is nominally subdivided into 100 øre , although the last coins denominated in øre were withdrawn in 2012.

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

A 20-crown gold coin dated 1874. The text '124 Stk. 1 Kil. f. G.' means that 124 pieces gave one kilogram of pure gold.

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

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–	—		—

Sources: ^{[5] [6] [7] [8] [9]}

Coins

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 will still exchange 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

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

Main article: Banknotes of the Norwegian krone

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.

Current series

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  [ no ]	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

Most traded currencies by value
Currency distribution of global foreign exchange market turnover ^[13]

Rank	Currency	ISO 4217 code	Symbol	Proportion of daily volume, April 2019	Proportion of daily volume, April 2022
1	United States dollar	USD	US$	88.3%	88.5%
2	Euro	EUR	€	32.3%	30.5%
3	Japanese yen	JPY	円 / ¥	16.8%	16.7%
4	Sterling	GBP	£	12.8%	12.9%
5	Renminbi	CNY	元 / ¥	4.3%	7.0%
6	Australian dollar	AUD	A$	6.8%	6.4%
7	Canadian dollar	CAD	C$	5.0%	6.2%
8	Swiss franc	CHF	CHF	5.0%	5.2%
9	Hong Kong dollar	HKD	HK$	3.5%	2.6%
10	Singapore dollar	SGD	S$	1.8%	2.4%
11	Swedish krona	SEK	kr	2.0%	2.2%
12	South Korean won	KRW	원 / ₩	2.0%	1.9%
13	Norwegian krone	NOK	kr	1.8%	1.7%
14	New Zealand dollar	NZD	NZ$	2.1%	1.7%
15	Indian rupee	INR	₹	1.7%	1.6%
16	Mexican peso	MXN	$	1.7%	1.5%
17	New Taiwan dollar	TWD	NT$	0.9%	1.1%
18	South African rand	ZAR	R	1.1%	1.0%
19	Brazilian real	BRL	R$	1.1%	0.9%
20	Danish krone	DKK	kr	0.6%	0.7%
21	Polish złoty	PLN	zł	0.6%	0.7%
22	Thai baht	THB	฿	0.5%	0.4%
23	Israeli new shekel	ILS	₪	0.3%	0.4%
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%
27	Turkish lira	TRY	₺	1.1%	0.4%
28	Hungarian forint	HUF	Ft	0.4%	0.3%
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%
32	Malaysian ringgit	MYR	RM	0.1%	0.2%
33	Colombian peso	COP	COL$	0.2%	0.2%
34	Russian ruble	RUB	₽	1.1%	0.2%
35	Romanian leu	RON	L	0.1%	0.1%
…	Other			2.2%	2.5%
Total [note 1]				200.0%	200.0%

The cost of one euro in Norwegian krone (from 1999)

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.

Current NOK exchange rates

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

• Danish krone
• Economy of Norway
• Estonian kroon
• Gold reserves of Norway
• Icelandic króna
• Scandinavian Monetary Union
• Swedish krona
• Table of historical exchange rates

Notes

1. The total sum is 200% because each currency trade always involves a currency pair; one currency is sold (e.g. US$) and another bought (€). Therefore each trade is counted twice, once under the sold currency ($) and once under the bought currency (€). The percentages above are the percent of trades involving that currency regardless of whether it is bought or sold, e.g. the US dollar is bought or sold in 88% of all trades, whereas the euro is bought or sold 32% of the time.

References

1. Bank for International Settlements: Triennial Central Bank Survey p. 12
2. "Mest mat i handlekurven" (in Norwegian Bokmål). ssb.no. Retrieved 12 April 2016.
3. "NOK 14.1 billion in cross border trade". ssb.no. Retrieved 12 April 2016.
4. "History of Norges Bank".
5. "Notes and coins". www.norges-bank.no.
6. "Kroner og øre". www.dokpro.uio.no.
7. "Felles nettbutikk for Mynt & Seddel og Skanfil". www.skanfil.no.
8. "Numisma Mynthandel". www.numisma.no.
9. "50-øringen snart historie - Lovdata". lovdata.no.
10. "50-øre coin to be withdrawn in 2012".
11. Aas, Magnus Lutnæs (9 August 2014). "Forsikringsselskap utbetalte forlik på 130 000 kroner i småmynt". dagbladet.no.
12. Andersen, Øystein (18 February 2006). "Myntsvindlere herjer i Oslo". Dagbladet (in Norwegian). DB Medialab AS. Retrieved 8 March 2008.
13. "Triennial Central Bank Survey Foreign exchange turnover in April 2022" (PDF). Bank for International Settlements. 27 October 2022. p. 12. Archived (PDF) from the original on 27 October 2022. Retrieved 29 October 2022.

External links

• 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)