SEK: currency. Monetary unit of Sweden

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The monetary unit of Sweden is the local krone. It was put into circulation in 1873. Then Denmark and Sweden created a single economic space in the form of the Scandinavian Monetary Union. Norway joined two years later. After the end of the First World War, three states begin issuing their own crowns, which have not only regional, but also national status.

General information about the Swedish krona

There are one hundred øre in the Swedish krona. In the international financial system, the Swedish krona has the designation SEK. The currency of Sweden has not lost its position at home, despite the country's membership in the European Union. An interesting fact is the fact that this Scandinavian state has not yet entered the eurozone of circulation of the euro, although, according to the agreement of 1994, it undertook to do so, subject to certain criteria.

History of the Swedish krona

Many tourists and travelers don't know whose currency is SEK. The Swedish krona was put into circulation instead of the riksdaler. In translationkrona means "crown" in Swedish. The Scandinavian Monetary Union assumed the equal value of the currencies of the Scandinavian states in relation to gold, the content of which in coins was set at 0.4032258 grams.

With the outbreak of the First World War, Sweden, Denmark and Norway stopped the gold backing of their coins. Paper banknotes were put into circulation, which significantly affected the rates of all three currencies. The Scandinavian Monetary Union was never officially dissolved, but actually ceased to have any influence on the monetary policy of the three states in 1924. Then Danish and Norwegian coins were deprived of the status of an official payment instrument in Sweden, and SEK (the country's currency) became the only monetary unit in this state.

Big Bang

Big Bang, or "Big Bang", the event of October 1982, which had a huge impact on the further development of the Swedish economy. Then the country's leadership organized and carried out a large-scale devaluation of the Swedish krona, as a result of which the SEK exchange rate fell by 16%. The reason for such measures was the stagnation of the Swedish economy and lagging behind other Western countries, partly caused by the international economic crisis in the 70s of the XX century. The term Big Bang itself was borrowed from astronomy. The name was supposed to symbolize the beginning of a new stage in the development of the national economy of Sweden.

Paper Swedish krona notes

Today, paper banknotes of twenty, fifty, one hundred, five hundred and one thousand SEK are in circulation. What currency boasts original stories? Swedish crown! The banknote of twenty crowns depicts a portrait of the writer S. Lagerlöf on the obverse and the hero of her work “Nils Holgersson's Wonderful Journey Through Sweden” Niels on the reverse side. On fifty crowns, the face of opera singer Lind Jenny proudly flaunts. The Swedish naturalist and physician Linnaeus Karl is depicted on one hundred crowns.

On the banknote of five hundred crowns - the Swedish king Charles XI and the scientist, industrialist and inventor Christopher Polhammar. SEK - a currency worth a thousand crowns - contains the image of King Gustav Vase of Sweden.

Starting from 2005, paper bills and old-style coins are excluded from circulation. It would be appropriate to emphasize that coins began to disappear from circulation due to the liquidation of the Mint of Sweden, the existence of which was recognized as economically inexpedient. The photo below shows the banknotes of the latest series.

Due to the shortage of small change in Sweden, a peculiar tradition has developed to round the cost of all goods to half a crown. SEK - currency in banknotes and coins - is sold at local bank branches, at exchange points, on the territory of large shopping centers, in good hotels or at the post office.