Norwegian krone

Last updated

Krone
krone (Norwegian)
Norwegian 100-kroner banknote observe.jpg
100 kroner banknote obverse
ISO 4217
CodeNOK (578)
Subunit 0.01
Unit
Pluralkroner
Symbol kr
Denominations
Subunit
1100 øre
Plural
øre øre
Banknotes
Freq. used50, 100, 200, 500, 1,000 kroner
Coins
Freq. used1, 5, 10, 20 kroner
Demographics
Date of introduction1875;147 years ago (1875)
Replaced Norwegian rigsdaler
User(s)Flag of Norway.svg  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 It is nominally subdivided into 100 øre , although the last coins denominated in øre were withdrawn in 2012.

Contents

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. 20-kroner-1874-Norge.jpg
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 (19401945) 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

DenominationNotesCoins
PrintedInvalidCommentsMintedInvalidComments
1 øre1876–19721988Bronze, iron 1918–1921 & 1941–1945
2 øre1876–19721988Bronze, iron 1917–1920 & 1943–1945
5 øre1875–19821988Bronze, iron 1917–1920 & 1941–1945
10 øre1874–19912003Silver 1874–1919, cupro-nickel 1920–92 (holed 1924–51), zinc 1941–1945
25 øre1876–19821988Silver 1876–1919, cupro-nickel 1921–82 (holed 1921–50), zinc 1943–1945
50 øre1874–20122012Silver 1874–1919, cupro-nickel 1920–96 (holed 1920–49), zinc 1941–1945, bronze 1996–2012
1 krone1917–1925
1940–1950
1926
1999
Wartime "coin notes"1875–Silver 1875–1917, cupro-nickel 1925– (holed 1925–1951, 1997–)
2 kroner1918–1925
1940–1950
1926
1999
Wartime "coin notes"1876–19171922Silver 1878–1917
5 kroner1877–19631999Replaced by coin 19631963–Cupro-nickel (holed 1998–)
10 kroner1877–19841999Replaced by coin 19841983–Nickel-brass
20 kroner1994–Nickel-brass
50 kroner1877– 
100 kroner1877– 
200 kroner1994– 
500 kroner1877– 
1000 kroner1877– 

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+12 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.

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
ImageValueTechnical parametersDescriptionIssued since
ObverseReverseDiameterThicknessMassCompositionEdgeObverseReverse
1 krone21 mm1.7 mm4.35 g Cupronickel
75% Cu, 25% Ni
Smooth Harald V's monograma fowl 1997
Famside femmer.png Bakside femkrone.png 5 kroner26 mm2 mm7.85 gMilled St. Olav's Order acanthi leaves1998
10 kroner24 mm2 mm6.8 g81% Cu, 10% Zn, 9% NiInterrupted millingHarald V stave church roof1995
Framside.png Norwegian 20kr back.png 20 kroner27.5 mm2.2 mm9.9 gSmooth 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

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
ImageValueDimensions
(millimeters)
Main ColorDesignFirst issue
ObverseReverseObverseReverse
Norwegian 50 kroner observe.jpg 50 Norwegian Kroner Observe.jpg 50 kr126 × 70Green Utvær Lighthouse Stylized lighthouse beacon and Karlsvogna (Big Dipper)2018
Norwegian 100-kroner banknote observe.jpg Norwegian banknote 100 reverse.jpg 100 kr133 × 70Red Gokstad ship Stylized Container ship, a globe, and Orion 2017
Norwegian 200 kroner observe.jpg Norwegian 200 kroner reverse.jpg 200 kr140 × 70Blue Codfish Stylized fishing boat, a fishing net, and a beacon2017
500 kroner observe.jpg Norwegian 500-kroner reverse.jpg 500 kr147 × 70OrangeRescue vessel RS 14 Stavanger  [ no ]Stylized oil platform, gas pipeline networks from the North Sea, and an ammonite 2018
Norwegian 1000-kroner observe.jpg Norwegian 1000-kroner reverse.jpg 1000 kr154 × 70PurpleWave in the seaStylized horizon and water molecules2019
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]
RankCurrency ISO 4217
code
Symbol Proportion of
daily volume,
April 2019
Proportion of
daily volume,
April 2022
1
Flag of the United States.svgUnited States dollar
USD
US$
88.3%88.5%
2
Flag of Europe.svgEuro
EUR
32.3%30.5%
3
Flag of Japan.svgJapanese yen
JPY
円 / ¥
16.8%16.7%
4
Flag of the United Kingdom.svgSterling
GBP
£
12.8%12.9%
5
Flag of the People's Republic of China.svgRenminbi
CNY
元 / ¥
4.3%7.0%
6
Flag of Australia (converted).svgAustralian dollar
AUD
A$
6.8%6.4%
7
Flag of Canada (Pantone).svgCanadian dollar
CAD
C$
5.0%6.2%
8
Flag of Switzerland (Pantone).svgSwiss franc
CHF
CHF
5.0%5.2%
9
Flag of Hong Kong.svgHong Kong dollar
HKD
HK$
3.5%2.6%
10
Flag of Singapore.svgSingapore dollar
SGD
S$
1.8%2.4%
11
Flag of Sweden.svgSwedish krona
SEK
kr
2.0%2.2%
12
Flag of South Korea.svg South Korean won
KRW
원 / ₩
2.0%1.9%
13
Flag of Norway.svg Norwegian krone
NOK
kr
1.8%1.7%
14
Flag of New Zealand.svgNew Zealand dollar
NZD
NZ$
2.1%1.7%
15
Flag of India.svg Indian rupee
INR
1.7%1.6%
16
Flag of Mexico.svgMexican peso
MXN
$
1.7%1.5%
17
Flag of the Republic of China.svg New Taiwan dollar
TWD
NT$
0.9%1.1%
18
Flag of South Africa.svg South African rand
ZAR
R
1.1%1.0%
19
Flag of Brazil.svg Brazilian real
BRL
R$
1.1%0.9%
20
Flag of Denmark.svg Danish krone
DKK
kr
0.6%0.7%
21
Flag of Poland.svg Polish złoty
PLN
0.6%0.7%
22
Flag of Thailand.svg Thai baht
THB
฿
0.5%0.4%
23
Flag of Israel.svg Israeli new shekel
ILS
0.3%0.4%
24
Flag of Indonesia.svg Indonesian rupiah
IDR
Rp
0.4%0.4%
25
Flag of the Czech Republic.svg Czech koruna
CZK
0.4%0.4%
26
Flag of the United Arab Emirates.svg UAE dirham
AED
د.إ
0.2%0.4%
27
Flag of Turkey.svgTurkish lira
TRY
1.1%0.4%
28
Flag of Hungary.svg Hungarian forint
HUF
Ft
0.4%0.3%
29
Flag of Chile.svg Chilean peso
CLP
CLP$
0.3%0.3%
30
Flag of Saudi Arabia.svg Saudi riyal
SAR
0.2%0.2%
31
Flag of the Philippines.svg Philippine peso
PHP
0.3%0.2%
32
Flag of Malaysia.svg Malaysian ringgit
MYR
RM
0.1%0.2%
33
Flag of Colombia.svg Colombian peso
COP
COL$
0.2%0.2%
34
Flag of Russia.svgRussian ruble
RUB
1.1%0.2%
35
Flag of Romania.svg Romanian leu
RON
L
0.1%0.1%
Flag placeholder.svg Other2.2%2.5%
Total [note 1] 200.0%200.0%
The cost of one euro in Norwegian krone (from 1999) Euro exchange rate to NOK.svg
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

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.

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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. 1 2 "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.