What is the currency in Denmark: history, description

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

The Danish krone is distributed in Denmark, the Faroe Islands and Greenland. The currency code is DKK, denoted as kr. The very name "crown" is translated as "crown". One crown consists of 100 øre. The krone is currently pegged to the euro. Today, banknotes of 50, 100, 200, 500 and 1000 Danish kroner are in circulation. As for coins, there are 50 öre and 1, 2, 5, 10 and 20 crowns in circulation.

Origin and history

Various events in the history of the country influenced what currency was in circulation in Denmark. The oldest Danish coins are the so-called corsmenters or "cross-coins" minted by Harold Sinezuby at the end of the 10th century. Lund was the main minting site and one of the most important cities in Denmark during the Middle Ages, but in this era, coins were also minted in places like Roskilde, Odense or Viborg.

The Danish krone was usually based on the silver standard. Periodically, the amount of metal in coins decreased, as a resultthey did not live up to their face value. This was done mainly to generate additional income for the monarch or state. As a result, the public began to lose confidence in the respective coins, and the Danish currency was recast several times in an attempt to restore public confidence in the coins. Eventually paper money was issued.

At the end of the 18th and 19th centuries. increased economic activity in the country, and with it increased the need for means of payment, which were easier to issue than coins. Consequently, banknotes began to gain more and more popularity.

What kind of currency in Denmark will continue to exist was influenced by the formation of the Scandinavian Monetary Union, which entered into force in 1873 (and with it the new currency, which was adopted two years later) and existed until the First World War war. It was then that a new crown was introduced. The three Scandinavian countries were members of the union, and the new currency was called the "krone" in Denmark, Norway and Sweden. This word literally means "crown" in all three languages.

The Scandinavian Monetary Union ended in 1914 when the gold standard was dropped. Denmark, Sweden and Norway still decided to keep the name of their national, now separated currencies.

Denmark later returned to the gold standard in 1924, but finally stopped following it in 1931. Between 1940 and 1945 the Danish krone was pegged to the German Reichsmark until the end of the Germanoccupation.

Economy

The country advocates a liberal trade policy.

The main industries are textiles, clothing, windmills, food processing, chemicals, metallurgy (steel, iron, non-ferrous metals), gas, wood processing, furniture manufacturing and shipbuilding.

Export products are meat, spruce, wood, fish, dairy products, potted plants, furniture, pharmaceuticals, tools and machinery. Imported products are chemicals, grains, foodstuffs, raw materials, equipment and machinery.

Unemployment is 4.1%. Poverty is seen as unacceptable because Denmark has an extensive welfare system. Inflation in the country is 1.3%.

What is the currency in Denmark now

After 1945, 24 crowns were equal to 1 British pound. In 1949, the krone became part of the Bretton Woods monetary system and depreciated to 6.91 kroner=1 US dollar. In 1997, a new series of banknotes was issued.

In the year 200, a referendum was held in the country, and the local currency was tied to the euro. Themed coins first appeared in 2001.

Many tourists will be wondering what the exchange rate is in Denmark against the ruble: 10 DKK=100, 49 RUB.

Coins

Different series of colors are designed to differentiate them and identify which currency is in circulation in Denmark. For the manufacture of 50 ore, copper and bronze are used. Coins 1 and 5 kroons are silver in color and consist offrom a copper-nickel alloy, 10 and 20 crowns are made of aluminum bronze, 50 crowns are gold. Coins in denominations of 1 and 5 crowns have notches. The 1 crown coin also has a hole in the center. These properties allow them to be distinguished.

Banknotes

There are banknotes in circulation from 5 to 1000 crowns. A common is a series produced from 1952 to 1964. This series featured values of 5, 10, 50, 100 and 500 crowns. Another series was introduced in 1992 in values of 50, 100, 200, 500 and 1000 crowns. It was a series featuring 50, 100, 200, 500 and 1000 bridges. New banknote designs were circulated in 2009 and 2011.

Greenland and the Faroe Islands

Danish money circulates in Greenland like the Greenlandic krone. It should also be mentioned which currency in Denmark is also distributed in the Faroe Islands: the so-called Faroese krone is in circulation there, as well as the Danish series of coins.