Danish krone

Danish krone

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The krone is the official currency of the Kingdom of Denmark
Kingdom of Denmark
The Kingdom of Denmark or the Danish Realm , is a constitutional monarchy and sovereign state consisting of Denmark proper in northern Europe and two autonomous constituent countries, the Faroe Islands in the North Atlantic and Greenland in North America. Denmark is the hegemonial part, where the...

 consisting of Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

, the Faroe Islands and Greenland
Greenland
Greenland is an autonomous country within the Kingdom of Denmark, located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago. Though physiographically a part of the continent of North America, Greenland has been politically and culturally associated with Europe for...

. It is subdivided into 100 øre (singular: øre). The krone is pegged to the euro via the ERM II
European Exchange Rate Mechanism
The European Exchange Rate Mechanism, ERM, was a system introduced by the European Community in March 1979, as part of the European Monetary System , to reduce exchange rate variability and achieve monetary stability in Europe, in preparation for Economic and Monetary Union and the introduction of...

, the European Union's exchange rate mechanism.

Etymology



The name of the common currency was "krone" in Denmark, Norway (see Norwegian krone
Norwegian krone
The krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...

) and "krona
Swedish krona
The krona has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value...

" in Sweden. All three countries, still, being constitutional monarchies shared same, traditional symbol, the crown which translated into the Scandinavian languages, gives the same translation, hence different linguistic variations.

The krone was introduced as a result of the formation of Scandinavian Monetary Union
Scandinavian Monetary Union
The Scandinavian Monetary Union was a monetary union formed by Sweden and Denmark on May 5, 1873, by fixing their currencies against gold at par to each other...

 in 1873. The initial parties of the monetary union were the countries of Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

 and Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

, with Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...

 joining two years later, in 1875.
After the dissolution in 1914 of the monetary union, none of the three countries changed the names of the now separate currencies.

History


The first actual organised coinage was created by Knud den Store (Canute the Great) in the 1020s. Lund was the principal minting place and one of Denmark's most important cities in the Middle Ages, but coins were also minted in Roskilde, Slagelse, Odense, Aalborg, Århus, Viborg, Ribe, Ørbæk and Hedeby. For almost 1,000 years, Danish kings – with a few exceptions – have issued coins with their name, monogram and/or portrait. Coins were used not only as a means of payment, but also as the state's probably only form of mass communication by which the king could assert his sovereignty.

The coinage was based on silver, but to give the kings – and thus the state – an easy source of income, the metal value was gradually reduced, and thus did not correspond to face value. In addition, taxes were sometimes imposed via the coinage, e.g. in connection with compulsory substitutions where the value of the new coins received did not match that of the old coins handed in.

In 1875, kroner and øre replaced rigsdaler and skilling. At the same time, the gold standard was introduced instead of the silver standard.The latter part of the 18th century and much of the 19th century saw expanding economic activity and thus also a need for means of payment that were easier to handle than coins. Consequently, banknotes were increasingly used instead of coins.

Until the late 18th century, the krone was a denomination equal to 8 mark
Danish rigsdaler
The rigsdaler was the name of several currencies used in Denmark until 1873. The similarly named Reichsthaler, riksdaler and rijksdaalder were used in Germany and Austria-Hungary, Sweden and the Netherlands, respectively....

. A new krone was introduced as the currency of Denmark in 1873. It replaced the Danish rigsdaler
Danish rigsdaler
The rigsdaler was the name of several currencies used in Denmark until 1873. The similarly named Reichsthaler, riksdaler and rijksdaalder were used in Germany and Austria-Hungary, Sweden and the Netherlands, respectively....

 at a rate of 2 kroner = 1 rigsdaler. This placed the krone on the gold standard
Gold standard
The gold standard is a monetary system in which the standard economic unit of account is a fixed mass of gold. There are distinct kinds of gold standard...

 at a rate of 2480 kroner = 1 kilogram fine gold.

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
German reichsmark
The Reichsmark was the currency in Germany from 1924 until June 20, 1948. The Reichsmark was subdivided into 100 Reichspfennig.-History:...

. 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
Bretton Woods system
The Bretton Woods system of monetary management established the rules for commercial and financial relations among the world's major industrial states in the mid 20th century...

, 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.

Relationship to the euro



Denmark has not introduced the euro, following a rejection by referendum in 2000
Danish euro referendum, 2000
A referendum on joining the Euro was held in Denmark on 28 September 2000. It was rejected by 53.2% of voters with a turnout of 87.6%.-Background:...

, 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. Denmark borders one eurozone member, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...

 and one EU member obliged to join the euro in the future, Sweden
Sweden
Sweden , officially the Kingdom of Sweden , is a Nordic country on the Scandinavian Peninsula in Northern Europe. Sweden borders with Norway and Finland and is connected to Denmark by a bridge-tunnel across the Öresund....

.

Faroe Islands and Greenland



The Faroe Islands uses a localized, non-independent version of the Danish krone, known as the Faroese króna
Faroese króna
The króna is the currency of the Faroe Islands. It is issued by the Danish National Bank. It is not an independent currency but a version of the Danish krone. Consequently, it does not have an ISO 4217 currency code. The ISO 4217 code for the Danish krone is DKK...

pegged with the Danish krone at par, using the Danish coin series, but have their own series of distinct banknotes, first being issued in the 1950's and later modernized in the 1970's and the 2000's.

Greenland
Greenland
Greenland is an autonomous country within the Kingdom of Denmark, located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago. Though physiographically a part of the continent of North America, Greenland has been politically and culturally associated with Europe for...

 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
Danmarks Nationalbank
Danmarks Nationalbank is the central bank of the Kingdom of Denmark. It is a non-eurozone member of the European System of Central Banks . The bank issues the Danish currency, the krone....

 ceased the project to develop a Greenlandic series. Still, Greenland continues to use Danish kroner as sole official currency.
Historically, Greenland
Greenland
Greenland is an autonomous country within the Kingdom of Denmark, located between the Arctic and Atlantic Oceans, east of the Canadian Arctic Archipelago. Though physiographically a part of the continent of North America, Greenland has been politically and culturally associated with Europe for...

 under the colonial administration issued distinct banknotes between 1803 and 1968, together with coins between 1926 and 1964 (see Greenland rigsdaler and Greenland krone).

Alloys and colour scheme


The design of the coin series is intended to ensure that the coins are easy to distinguish from each other:

The series is therefore divided into three sequences, each with its own metal colour. This division into colours has its roots in history. In earlier times, the value of the coins was equivalent to the value of the metal from which they were minted: gold was used for the coins of the highest denominations, silver for the next-highest, and copper for the lowest coin denominations. This correlation between colour and value has been retained in the present coin series. The 50-øre coins are thus minted from copper-coloured bronze, the 1-, 2- and 5-krone coins from a silver-coloured cupro-nickel alloy, and the 10- and 20-krone coins from golden aluminium bronze.

The coins differ in terms of size, weight and rim. Within each sequence the diameter and weight of the coins increase with their value. The 50-øre and 10-krone coins have smooth rims, while the rims of the 1- and 5-krone coins are milled. The rims of the 2- and 20-krone coins have interrupted milling. The 1-, 2- and 5-krone coins have a hole in the middle. Use of these various characteristics makes it easy for the blind and sight-impaired to tell the coins apart.
Currently circulated coins
Value Technical parameters Description
Diameter Thickness Mass Composition Edge Obverse Reverse
50 øre
50 øre (Denmark)
The fifty øre coin is currently the smallest-denomination coin of the Danish krone. Since the removal of the 25 øre coin in 2008, it has been the only Danish coin with a face value of under one krone.-Design:...

21.5 mm 1.55 mm 4.3 g Tin
Tin
Tin is a chemical element with the symbol Sn and atomic number 50. It is a main group metal in group 14 of the periodic table. Tin shows chemical similarity to both neighboring group 14 elements, germanium and lead and has two possible oxidation states, +2 and the slightly more stable +4...

-bronze
Bronze
Bronze is a metal alloy consisting primarily of copper, usually with tin as the main additive. It is hard and brittle, and it was particularly significant in antiquity, so much so that the Bronze Age was named after the metal...

Smooth Crown
Crown (headgear)
A crown is the traditional symbolic form of headgear worn by a monarch or by a deity, for whom the crown traditionally represents power, legitimacy, immortality, righteousness, victory, triumph, resurrection, honour and glory of life after death. In art, the crown may be shown being offered to...

 of King Christian V
Christian V of Denmark
Christian V , was king of Denmark and Norway from 1670 to 1699, the son of Frederick III of Denmark and Sophie Amalie of Brunswick-Lüneburg...

Heart (symbol of the Royal Mint)
1 krone
1 krone (Denmark)
-Silver coin:The first Krone coin was a 0.800 silver coin issued in 1875. It measured 25mm in diameter and weighed 7.5g. The coin featured King Christian IX of Denmark on its obverse, with the inscription KONGE AF DANMARK . The reverse featured the coat of arms of Denmark with the denomination...

20.25 mm 1.6 mm 3.6 g Cupronickel
Cupronickel
Cupronickel or copper-nickel or "cupernickel" is an alloy of copper that contains nickel and strengthening elements, such as iron and manganese. Cupronickel is highly resistant to corrosion in seawater, because its electrode potential is adjusted to be neutral with regard to seawater...

 
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
Aluminium bronze
Aluminium bronze is a type of bronze in which aluminium is the main alloying metal added to copper, in contrast to standard bronze or brass...

 
92% Cu, 6% Al, 2% Ni
Smooth Queen Margrethe II
Margrethe II of Denmark
Margrethe II is the Queen regnant of the Kingdom of Denmark. In 1972 she became the first female monarch of Denmark since Margaret I, ruler of the Scandinavian countries in 1375-1412 during the Kalmar Union.-Early life:...

The national coat of arms of Denmark
Coat of arms of Denmark
The royal coat of arms is more complex. The shield is quartered by a silver cross fimbriated in red, derived from the Danish flag, the Dannebrog. The first and fourth quarters represent Denmark by three crowned lions passant accompanied by nine hearts; the second quarter contains two lions passant...

20 kroner 27 mm 2.35 mm 9.3 g Interrupted milling

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
Copenhagen City Hall
Copenhagen City Hall is the headquarters of the Municipal Council as well as the Lord mayor of the City of Copenhagen, Denmark. The building is situated on The City Hall Square in central Copenhagen....

 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
Hans Christian Andersen
Hans Christian Andersen was a Danish author, fairy tale writer, and poet noted for his children's stories. These include "The Steadfast Tin Soldier," "The Snow Queen," "The Little Mermaid," "Thumbelina," "The Little Match Girl," and "The Ugly Duckling."...

'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.
In 2007, as the fairy tale series ended, a second series of three 10-kroner commemorative coins was introduced, celebrating the International Polar Year
International Polar Year
The International Polar Year is a collaborative, international effort researching the polar regions. Karl Weyprecht, an Austro-Hungarian naval officer, motivated the endeavor, but died before it first occurred in 1882-1883. Fifty years later a second IPY occurred...

. Featuring motifs of a polar bear, the Sirius Sledge Patrol
Slædepatruljen Sirius
Slædepatruljen Sirius or informally Siriuspatruljen is a unique elite Danish navy unit that conducts long-range reconnaissance patrolling and enforces Danish sovereignty in the arctic wilderness of Northern and Eastern Greenland, an area that includes the largest national park in the...

 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.

Banknotes



Bridge series


The process of designing the 'Bridge' banknotes was initiated in 2006 by the Danish National Bank. The theme of the new banknotes is Danish bridges and the surrounding landscapes, or details from these landscapes. The artist Karin Birgitte Lund has chosen to interpret this theme in two ways: bridges as links between various parts of Denmark and as links between the past and the present. The present is represented by the bridges, the past by five distinctive prehistoric objects found near the bridges. Among the new security features is a window thread with a moving wave pattern. Another feature is a new, sophisticated hologram that reflects light in different colours. The new banknotes will also have the traditional security features such as the watermark and the hidden security thread.
Banknotes of Denmark, 2009 series
Image Value Dimensions Main colour Description Date of
Obverse Reverse Obverse Reverse Watermark first printing issue
50 kroner 125 × 72 mm Purple Sallingsund Bridge
Sallingsund Bridge
Sallingsund Bridge is a bridge that crosses Salling Sund between the island of Mors and the Salling peninsula on the mainland in Denmark...

Skarpsalling vessel
Bowl (vessel)
A bowl is a common open-top container used in many cultures to serve food, and is also used for drinking and storing other items. They are typically small and shallow, although some, such as punch bowls and salad bowls, are larger and often intended to serve many people.Bowls have existed for...

Denomination and Skuldelev Viking Ship
Skuldelev ships
The Skuldelev ships is a term used for 5 Viking ships recovered from Peberrenden by Skuldelev, c. 20 km north of Roskilde in Denmark. In 1962, the remains of the ships were excavated over 4 months . The recovered pieces constitute 5 types of ships and have been dated to the 11th century...

 in Roskilde Fjord
Roskilde Fjord
Roskilde Fjord is the fjord north of Roskilde, Denmark, and is located at . It is a long branch of the Isefjord.-Cities:The cities Frederiksværk, Frederikssund, Jægerspris, Jyllinge and Roskilde, , all have coastline at Roskilde Fjord...

2009 11 August 2009
100 kroner 135 × 72 mm Orange Little Belt Bridge
Little Belt Bridge
The Little Belt Bridge , also known as The Old Little Belt Bridge, is a truss bridge over the Little Belt strait in Denmark. The first bridge to have been constructed over the strait, it spans from Snoghøj on Jutland to Kongebrogaarden on Funen. It is owned by the state and Banedanmark, the Danish...

Hindsgavl dagger
Dagger
A dagger is a fighting knife with a sharp point designed or capable of being used as a thrusting or stabbing weapon. The design dates to human prehistory, and daggers have been used throughout human experience to the modern day in close combat confrontations...

2010 4 May 2010
200 kroner 145 × 72 mm Green Knippelsbro
Knippelsbro
Knippelsbro is a bascule bridge across the Inner Harbour of Copenhagen, Denmark, connecting Børsgade on Zealand-side Slotsholmen to Torvegade on Christianshavn...

Langstrup belt plate
Belt buckle
A belt buckle is a buckle, a clasp for fastening two ends, as of straps or a belt, in which a device attached to one of the ends is fitted or coupled to the other. The word enters Middle English via Old French and the Latin buccula or "cheek-strap," as for a helmet...

2010 19 October 2010
500 kroner 155 × 72 mm Blue Queen Alexandrine Bridge
Queen Alexandrine Bridge
The Queen Alexandrine bridge is a road arch bridge that crosses Ulv Sund between the islands of Zealand and Møn in Denmark....

Keldby bronze pail
Bucket
A bucket, also called a pail, is typically a watertight, vertical cylinder or truncated cone, with an open top and a flat bottom, usually attached to a semicircular carrying handle called the bail. A pail can have an open top or can have a lid....

2011 15 February 2011
1000 kroner 165 × 72 mm Red Great Belt Bridge Trundholm Sun Chariot
Trundholm sun chariot
The Trundholm sun chariot , is a late Nordic Bronze Age artifact discovered in Denmark. It is a representatino of the sun chariot, a bronze statue of a horse and a large bronze disk, which are placed on a device with spoked wheels....

2011 24 May 2011

Trivia


Within context, some of the banknotes have figurative meanings with the 100 kroner bill sometimes referred to as a hund (dog) shortening the word hundrede (a hundred). The 500 kroner bill is can be referred to as a plovmand because of previously circulations of the bill featured a picture of a man with a plough and the 1000 kroner banknote, too, can be referred to as a tudse (toad) taken from a wordplay on the word tusinde meaning a thousand.

See also

  • Banknotes of Denmark, 1972 series
    Banknotes of Denmark, 1972 series
    The Paper money of Denmark are part of the physical form of Denmark's currency, the Krone . They were solely issued by Danmarks Nationalbank since 1 August 1818.The 1972 series of banknotes issued by Denmark are still valid but are no longer printed...

  • Banknotes of Denmark, 1997 series
    Banknotes of Denmark, 1997 series
    Danmarks Nationalbank is issuing banknotes of the Danish Krone and is in the transition of replacing the 1997 banknote series. As of September 2010 the 200kr, 500kr and 1000kr from the 1997 series are the currently circulating notes....

  • Denmark and the euro
    Denmark and the euro
    Denmark uses the krone as its currency and does not currently use the euro, having negotiated an opt-out from participation under the Edinburgh Agreement in 1992. In 2000 the government held a referendum on introducing the euro, which was defeated with 46.8% voting yes and 53.2% voting no...

  • Economy of Denmark
    Economy of Denmark
    With very few natural resources, the economy of Denmark relies almost entirely on human resources. The service sector makes up the vast amount of the employment and economy. Its industrialised market economy depends on imported raw materials and foreign trade. Within the European Union, Denmark...

  • Economy of the Faroe Islands
    Economy of the Faroe Islands
    After the severe economic troubles of the early 1990s, brought on by a drop in the vital fish catch and poor management of the economy, the Faroe Islands have come back in the last few years, with unemployment down to 5% in mid-1998, and holding below 3% since 2006, one of the lowest rates in Europe...

  • Economy of Greenland
    Economy of Greenland
    The Economy of Greenland can be characterized as small, mixed and vulnerable. The present economy consists of a big public sector and comprehensive foreign trade, which has resulted in an economy with periods of strong growth, considerable inflation, unemployment problems and extreme dependence on...

  • Scandinavian Monetary Union
    Scandinavian Monetary Union
    The Scandinavian Monetary Union was a monetary union formed by Sweden and Denmark on May 5, 1873, by fixing their currencies against gold at par to each other...


External links