2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16
The emergence of the currency of any country was preceded by a variety of historical events. The Danish krone is also evidence of important phenomena in the life of the monarchy. The formation of this banknote began in 1873, when economic instability, apathy and devastation were observed on the territory of the kingdom. The government of the country did its best to improve the situation. To overcome the critical situation, the local monetary currency, the Danish krone, was put into circulation.
In parallel with this event, the Scandinavian monetary (monetary) union was signed between this country and Sweden. The second name of this pact is "Currency Reform". The goal pursued by this union is simple and understandable - to stabilize the monetary units of these countries in relation to gold. The idea of signing such an agreement first appeared in Denmark. It was there that students began to advocate for the expansion of the national market by combining it with the markets of neighboring countries.
Since that time, Sweden has changed the name of its currency and, like the Danish krone, it began to contain in its name a derivative of the word "crown" - krone.
After some time, in 1876, toThis union was also joined by Norway, which at that time was in close economic relations with Sweden. Like the two founding countries of this pact, this kingdom changed the name of its currency to a name similar to the name of the means of payment of its neighbors. Prior to this, the currency of Denmark was called the riksdaler, the par value of which was 96 skillings, and in Norway there was a special daler in circulation.
It is worth noting that the positive aspect of the formed Scandinavian Monetary Union was the ability to freely use any of the monetary units in each of the three countries. The outbreak of the First World War marked a gap in the guarantees of this agreement. At the same time, Sweden, Denmark and Norway switched to using paper means of payment, and gold backing was minimized, which negatively affected the exchange rate of each currency. Lost force and other clauses of the once signed agreement. So, if until that time the Swedish, Norwegian and Danish kroner were issued in the form of gold coins, then in the early 20s of the 20th century they switched to the production of iron money. Those, in turn, were replaced by copper-nickel rounds. At the same time, since 1924, a single national monetary unit, the Swedish krona, has been established on the territory of Sweden, and the currency signs of the allied countries have lost their force and are no longer considered legal tender.
To date, the Danish krone is the only national currency of this country, one unit of which contains 100 ore. At the same time, it is noteworthy that the Faroe Islands,that are part of the country, have their own currency, the conversion of which occurs at the rate of 1: 1 in relation to the main monetary unit of the country. Previously, before the advent of the euro, the Danish krone was pegged to the German mark.
The country's economy has coins and banknotes in circulation. The smallest paper sign is 100 crowns, there are also denominations of 200, 500 and 1000. Coins whose denominations start at 50 öre and end at 20 crowns can also be found in Danish wallets.
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