Danish krone
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| Danish krone dansk krone (Danish) |
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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 form DKR or Dkr is seen, but these symbols are not official.
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[edit] 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 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 the "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.
[edit] Faroe Islands and Greenland
On the Faroe Islands Danish coins are used as well but the islands use bank notes with unique Faroese motifs (see: Faroese króna; although a common misunderstanding, the Faroese króna is legally speaking not an independent currency.) In 2006, the governments of Denmark and Greenland announced that by 2008, Greenlanders would be able to pay with Danish banknotes printed with Greenlandic motifs, similar to the current situation in the Faroes. Ordinary Danish banknotes will remain legal tender in Greenland.
[edit] Relationship to the euro
Denmark negotiated special "opt-outs" of the Maastricht Treaty that allowed the country to preserve the krone while the majority of the European Union adopted the euro in 1999. A new referendum held in 2000 reconfirmed the population's attachment to the krone. The Liberal-Conservative government of Anders Fogh Rasmussen planned on holding another referendum on the adoption of the euro in 2004, but these plans were dropped when polls showed decreasing support for the euro. The government is still committed to Danish membership of the euro.
The krone is closely 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 Deutsche Mark, thus keeping the krone stable at all times.
[edit] Coins
The coins of the krone are minted by the Danish National Bank. When the currency was introduced, 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 1916, followed by silver coins in 1919. Iron was substituted for 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. Aluminium-bronze 2 kroner were reintroduced in 1947, followed by cupro-nuckel 10 and 25 øre 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 not issued after 1972 but 10 kroner coins were introduced in 1979. 5 and 10 øre coins ceased production in 1988. Between 1989 and 1992, 50 øre, 2 and 20 kroner coins were introduced to give the following coins in circulation today:
| Value | Obverse | Reverse |
|---|---|---|
| 25 øre | Crown of King Christian V | Heart (symbol of the Royal Mint) |
| 50 øre | Crown of King Christian V | Heart (symbol of the Royal Mint) |
| 1 krone | Monogram of Queen Margrethe II | Traditional design (holed) |
| 2 kroner | Monogram of Queen Margrethe II | Traditional design (holed) |
| 5 kroner | Monogram of Queen Margrethe II | Traditional design (holed) |
| 10 kroner | Queen Margrethe II | Coat of arms |
| 20 kroner | Queen Margrethe II | Coat of arms |
[edit] 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 1000 kroner notes began production. 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. The presently circulating banknotes are:
| Value | Obverse | Reverse |
|---|---|---|
| 50 kroner | Karen Blixen | Centaur from Landet Church |
| 100 kroner | Carl Nielsen | Basilisk from Tømmerby Church |
| 200 kroner | Johanne Luise Heiberg | Lion from Viborg Cathedral |
| 500 kroner | Niels Bohr | Knight fighting a dragon from Lihme Church |
| 1000 kroner | Anna and Michael Ancher | Tournament from Bislev Church |
The current designs of the Danish banknotes are going to be replaced from 2009 to 2012 [1]. The new theme for the banknotes is Danish bridges. The process of designing the new banknotes was initiated in 2006 by Danmarks Nationalbank.
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[edit] References
- ^ Nationalbanken. New Danish banknote series. Retrieved on 2007-01-02.
- Chester L. Krause & Cliffor Mischler (1991). in Colin R. Bruce II: Standard Catalog of World Coins: 1801-1991, 18th ed., Krause Publications. ISBN 0-87341-150-1.
- Albert Pick (1994). in Neil Shafer & Colin R. Bruce II: Standard Catalog of World Paper Money, General Issues, 7th ed., Krause Publications. ISBN 0-87341-207-9.
[edit] See also
| Danish currency | |
|---|---|
| Coins | .25 · .50 · 1 · 2 · 5 · 10 · 20 |
| Banknotes | 50 · 100 · 200 · 500 · 1000 |
| Faroese banknotes | 50 · 100 · 200 · 500 · 1000 |
| Currencies named crowns or similar | |
|---|---|
| Current | Czech koruna · Danish krone · Estonian kroon · Faroese króna · Icelandic króna · Norwegian krone · Slovak koruna · Swedish krona |
| Defunct | Austro-Hungarian krone · Bohemian and Moravian koruna · Czechoslovak koruna · Hungarian korona · Slovak koruna (WWII) · Yugoslav krone |
| As a denomination | British crown |
