Norwegian krone
Norsk krone(Norwegian) | |
---|---|
![]() 100 kroner banknote obverse | |
ISO 4217 | |
Code | NOK (numeric:578) |
Subunit | 0.01 |
Unit | |
Plural | kroner |
Symbol | kr |
Denominations | |
Subunit | |
1⁄100 | øre |
Plural | |
øre | øre |
Banknotes | |
Freq. used | 50, 100, 200, 500 kroner |
Rarely used | 1000 kroner |
Coins | 1, 5, 10, 20 kroner |
Demographics | |
Date of introduction | 1875 |
Replaced | Norwegian speciedaler |
User(s) | ![]() |
Issuance | |
Central bank | Norges Bank |
Website | www |
Valuation | |
Inflation | 5.4% (April 2022) |
Source | Norges bank |
Thekrone(Norwegian:[ˈkrûːnə],abbreviation:kr(alsoNKrfor distinction);code:NOK), pluralkroner,is thecurrencyof theKingdom of Norway(includingoverseas territories and dependencies). It was traditionally known as theNorwegiancrownin English; however, this has fallen out of common usage. It is nominally subdivided into 100øre,although the last coins denominated in øre were withdrawn in 2012.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 inSwedenandFinlandthat are close to the Norwegian border, and also in some shops in the Danish ferry ports ofHirtshalsandFrederikshavn.Norwegians spent 14.1 billion NOK onborder shoppingin 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[edit]
![](https://upload.wikimedia.org/wikipedia/commons/thumb/4/42/20-kroner-1874-Norge.jpg/220px-20-kroner-1874-Norge.jpg)
The krone was introduced in 1875, replacing theNorwegian speciedaler/spesidalerat a rate of 4 kroner = 1 speciedaler. In doing so, Norway joined theScandinavian Monetary Union,which had been established in 1873. The Scandinavian currencies were mutually exchangeable at par until 1914 with the suspension of thegold standarddue 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 agold standardof 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 thepound sterlingat 1 pound = 19.9 kroner, and in 1939 the krone was pegged to theU.S. dollarat $1 = 4.4 kroner.[4]
During theGerman occupation(1940–1945) in theSecond World War,the krone was initiallypeggedto theReichsmarkat 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, theCentral Bank of Norwayabandoned the fixed exchange rate system in favor offloating 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[edit]
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– | — | — |
Coins[edit]
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 30skillingsand2+1⁄2specidaler. 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 theSecond 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 waswithdrawnon 1 May 2012. It was withdrawn because it was no longer circulating as an ordinary coin used for payment.[10]However, banks in Norway still exchanged 50 øre coins for higher values until 2022.
Currently circulating coins | ||||||||||
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Image | Value | Technical parameters | Description | Issued since | ||||||
Obverse | Reverse | Diameter | Thickness | Mass | Composition | Edge | Obverse | Reverse | ||
![]() |
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1 krone | 21 mm | 1.7 mm | 4.35 g | Cupronickel 75% Cu, 25% Ni |
Smooth | Harald V's monogram | afowl | 1997 |
![]() |
![]() |
5 kroner | 26 mm | 2 mm | 7.85 g | Milled | St. Olav's Order | acanthileaves | 1998 | |
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10 kroner | 24 mm | 2 mm | 6.8 g | 81% Cu, 10% Zn, 9% Ni | Interrupted milling | Harald V | stave churchroof | 1995 |
![]() |
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20 kroner | 27.5 mm | 2.2 mm | 9.9 g | Smooth | Viking ship | 1994 | ||
For table standards, see thecoin specification table. |
The 10 and 20 kroner coins carry the effigy of the currentmonarch.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 isAlt for Norge,meaning "Everything for Norway" ) is also inscribed on the 10 kroner coin.
Coinsandbanknotesof the Norwegian krone are distributed by theCentral Bank of Norway.
Up to 25 coins of any single denomination is consideredtvungent betalingsmiddel—a legally recognized method of payment, in which the intended recipient can not refuse payment, according toNorwegian law.[11]
Use of 10 Syrian pound coins in Norway[edit]
The characteristics of the tenSyrian pound(LS 10) coin have been found to so closely resemble the Norwegian 20 kroner (NKr 20) coin that it canfool vending machines, coins-to-cash machines, arcade machines, and any other coin-operated, automated service machinein 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 thatPosten 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 daysuspended sentence,for having used Syrian coins in arcade machines in themunicipalityofBærum.[12]
Banknotes[edit]
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.
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 | ||
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100 kr | 133 × 70 | Red | Gokstad ship | Stylized Container ship, a globe, andOrion | 2017 | ||
![]() |
![]() |
200 kr | 140 × 70 | Blue | Codfish | Stylized fishing boat, a fishing net, and a beacon | 2017 | ||
![]() |
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500 kr | 147 × 70 | Orange | Rescue vesselRS 14Stavanger | Stylized oil platform, gas pipeline networks from the North Sea, and anammonite | 2018 | ||
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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 thebanknote specification table. |
Exchange rates[edit]
Rank | Currency | ISO 4217 code |
Symbolor abbreviation |
Proportion of daily volume | Change (2019–2022) | |
---|---|---|---|---|---|---|
April 2019 | April 2022 | |||||
1 | U.S. dollar | USD | US$ | 88.3% | 88.5% | ![]() |
2 | Euro | EUR | € | 32.3% | 30.5% | ![]() |
3 | Japanese yen | JPY | ¥ /Yên | 16.8% | 16.7% | ![]() |
4 | Sterling | GBP | £ | 12.8% | 12.9% | ![]() |
5 | Renminbi | CNY | ¥ /Nguyên | 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 | 4.9% | 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 | MX$ | 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 | 0.2% | 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% | ![]() |
36 | Peruvian sol | PEN | S/ | 0.1% | 0.1% | ![]() |
37 | Bahraini dinar | BHD | .د.ب | 0.0% | 0.0% | ![]() |
38 | Bulgarian lev | BGN | BGN | 0.0% | 0.0% | ![]() |
39 | Argentine peso | ARS | ARG$ | 0.1% | 0.0% | ![]() |
… | Other | 1.8% | 2.3% | ![]() | ||
Total[a] | 200.0% | 200.0% |
![](https://upload.wikimedia.org/wikipedia/commons/thumb/e/e6/Euro_exchange_rate_to_NOK.svg/400px-Euro_exchange_rate_to_NOK.svg.png)
The value of the Norwegian krone compared to other currencies varies considerably from one year to another, mainly based on changes inoil pricesand interest rates. In 2002 the Norwegian krone grew to record high levels against theUnited States dollarand theeuro.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, theprice of oilwas high. At the time Norway was the world's third largestoil exporter.
In 2005, oil prices reached record levels of more than 60 dollars perbarrel.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 theCOVID-19 pandemic,the krone fell heavily, making one dollar cost 12.00 kroner on 19 March 2020.
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See also[edit]
- Danish krone
- Economy of Norway
- Estonian kroon
- Gold reserves of Norway
- Icelandic króna
- Scandinavian Monetary Union
- Swedish krona
- Table of historical exchange rates
Notes[edit]
- ^The total sum is 200% because each currency trade is counted twice: once for the currency being bought and once for the one being sold. The percentages above represent the proportion of all trades involving a given currency, regardless of which side of the transaction it is on. For example, the US dollar is bought or sold in 88% of all currency trades, while the euro is bought or sold in 31% of all trades.
References[edit]
- ^Bank for International Settlements: Triennial Central Bank SurveyArchived27 October 2011 at theWayback Machinep. 12
- ^"Mest mat i handlekurven"(in Norwegian Bokmål). ssb.no. 12 July 2011.Archivedfrom the original on 8 August 2016.Retrieved12 April2016.
- ^"NOK 14.1 billion in cross border trade".ssb.no.Archivedfrom the original on 8 August 2016.Retrieved12 April2016.
- ^ab"History of Norges Bank".Archivedfrom the original on 28 June 2022.Retrieved23 April2022.
- ^"Notes and coins".norges-bank.no.Archivedfrom the original on 2 March 2021.Retrieved16 March2021.
- ^"Kroner og øre".dokpro.uio.no.Archivedfrom the original on 9 June 2024.Retrieved16 March2021.
- ^"Felles nettbutikk for Mynt & Seddel og Skanfil".skanfil.no.Archivedfrom the original on 18 March 2021.Retrieved16 March2021.
- ^"Numisma Mynthandel".numisma.no.Archivedfrom the original on 6 March 2021.Retrieved16 March2021.
- ^"50-øringen snart historie – Lovdata".lovdata.no.Archivedfrom the original on 18 December 2022.Retrieved16 March2021.
- ^"50-øre coin to be withdrawn in 2012".Archived fromthe originalon 20 May 2011.Retrieved24 May2011.
- ^Aas, Magnus Lutnæs (9 August 2014)."Forsikringsselskap utbetalte forlik på 130 000 kroner i småmynt".dagbladet.no.Archivedfrom the original on 8 March 2021.Retrieved16 March2021.
- ^Andersen, Øystein (18 February 2006)."Myntsvindlere herjer i Oslo".Dagbladet(in Norwegian). DB Medialab AS.Archivedfrom the original on 21 March 2009.Retrieved8 March2008.
- ^Triennial Central Bank Survey Foreign exchange turnover in April 2022(PDF)(Report).Bank for International Settlements.27 October 2022. p. 12.Archived(PDF)from the original on 27 October 2022.
External links[edit]
- 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)