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Norwegian krone

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Norwegian krone

Norwegian krone
norsk krone (Norwegian)
ISO 4217 code NOK
Central bank Norges Bank
 Website .no.norges-bankwww
User(s)

 Norway

Inflation 2.3%
 Source The World Factbook, 2006 est.
Subunit
 1/100 øre
Symbol kr, ,-
Plural kroner
øre øre
Coins 1, 5, 10, 20 kr
Banknotes
 Freq. used 50 kr, 100 kr, 200 kr, 500 kr
 Rarely used 1000 kr

The krone (sign: kr; code: NOK) 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, and sometimes the suffix ,- is used instead after the amount. The name translates into English as "crown". The Norwegian krone was the thirteenth most traded currency in the world by value in April 2010, down three positions from 2007.[1]

Contents

  • History 1
  • Coins 2
  • Banknotes 3
  • Summary of denominations issued 4
  • Exchange rates 5
  • Usage 6
  • See also 7
  • References 8
  • External links 9

History

The krone was introduced in 1875, replacing the Norwegian speciedaler at a rate of 4 kroner = 1 speciedaler. In doing so, Norway joined the Scandinavian Monetary Union, which had been established in 1873. The Union persisted until 1914 but, after its dissolution, Denmark, Norway and Sweden all decided to keep the names of their respective and now separate currencies.

Within the Scandinavian Monetary Union, the krone was on a gold standard of 2480 kroner = 1 kilogram of pure gold (1 krone = 403.226 milligrams gold). This gold standard was restored between 1916 and 1920 and again in 1928 but was suspended permanently in 1931, when a peg to the British pound of 19.9 kroner = 1 pound was established (the previous rate had been 18.16 kroner = 1 pound). In 1939, Norway pegged the krone temporarily to the U.S. dollar at a rate of 4.4 kroner = 1 dollar.

During the floating exchange rate (managed float) due to the heavy speculation against the Norwegian currency in the early 1990s which lost the Norwegian central bank around two billion kroner in defensive purchases of the NOK through usage of foreign currency reserves for a relatively short period of time.

Coins

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 30 skillings and 2½ specidaler. 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 from 1920. Between 1917 and 1921, iron temporarily replaced bronze. 1917 also saw the last issuance of 2 kroner coins. During the German occupation in the Second 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.

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 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 which are currently legal tender, with the exception of the 50-øre coin which was withdrawn on May 1, 2012. It was withdrawn because it was no longer circulating as an ordinary coin used for payment.[2] However, banks in Norway will still exchange 50 øre coins for higher values until 2022.

Currently circulating coins
Value Technical parameters Description Issued since
Diameter Thickness Mass Composition Edge Obverse Reverse
1 krone 21 mm 1.7 mm 4.35 g Cupronickel
75% Cu, 25% Ni
Smooth Harald V's monogram a fowl 1997
5 kroner 26 mm 2 mm 7.85 g Milled St. Olav's Order acanthi leaves 1998
10 kroner 24 mm 2 mm 6.8 g 81% Cu, 10% Zn, 9% Ni Interrupted milling Harald V stave church roof 1995
20 kroner 27.5 mm 2.2 mm 9.9 g Smooth Viking ship 1994
For table standards, see the .

The 10- and 20-kroner coins carry the effigy of the current

The Central Bank of Norway.

Up to 25 coins of any, single denomination is considered tvungent betalingsmiddel — a legally recognized method of payment, in which the intended recipient can not refuse payment, according to Norwegian law[3]

Banknotes

In 1877, Norges Bank introduced notes for 5, 10, 50, 100, 500 and 1000 kroner. In 1917, 1 krone notes were issued, with 2 kroner notes 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. 200 kroner notes were introduced in 1994.

Current series
Image Value Dimensions
(millimeters)
Main Color Design First issue
Obverse Reverse Obverse Reverse
50 kr 128 × 60 Green Peter Christen Asbjørnsen Water lilies 2008
100 kr 136 × 65 Red Kirsten Flagstad Folketeatret in Oslo's concert hall 2006
200 kr 144 × 70 Blue Kristian Birkeland Northern polar region and aurora 2009
500 kr 152 × 75 Orange Sigrid Undset A wreath from the trilogy of Kristin Lavransdatter 2005
1000 kr 160 × 80 Purple Edvard Munch Excerpt from Munch's wall painting "The Sun" 2004
These images are to scale at 0.7 pixels per millimeter.

Summary of denominations issued

Denomination Notes Coins
Printed Invalid Comments Minted Invalid Comments
1 øre 1876–1972 1988 Bronze, iron 1918–21 & 1941–45
2 øre 1876–1972 1988 Bronze, iron 1917–20 & 1943–45
5 øre 1875–1982 1988 Bronze, iron 1917–20 & 1941–45
10 øre 1874–1991 2003 Silver 1874–1919, cupro-nickel 1920–92 (holed 1924–51), zinc 1941–45
25 øre 1876–1982 1988 Silver 1876–1919, cupro-nickel 1921–82 (holed 1921–50), zinc 1943–45
50 øre 1874–2012 2012 Silver 1874–1919, cupro-nickel 1920–96 (holed 1920–49), zinc 1941–45, bronze 1996–2012
1 krone 1917–1925
1940–1950
1926
1999
War time "coin notes" 1875– - Silver 1875–1917, cupro-nickel 1925– (holed 1925–51, 1997–)
2 kroner 1918–1925
1940–1950
1926
1999
War time "coin notes" 1876–1917 ?? 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–   -

Sources:,,[4][5] Bergen Mynt og Seddel, Numisma Mynthandel, Lovdata

Exchange rates

Most traded currencies by value
Currency distribution of global foreign exchange market turnover[6][7]
Rank Currency ISO 4217 code
(Symbol)
% daily share
(April 2013)
1
United States dollar
USD ($)
87%
2
Euro
EUR (€)
33%
3
Japanese yen
JPY (¥)
23%
4
Pound sterling
GBP (£)
12%
5
Australian dollar
AUD ($)
8.6%
6
Swiss franc
CHF (Fr)
5.2%
7
Canadian dollar
CAD ($)
4.6%
8
Mexican peso
MXN ($)
2.5%
9
Chinese yuan
CNY (¥)
2.2%
10
New Zealand dollar
NZD ($)
2.0%
11
Swedish krona
SEK (kr)
1.8%
12
Russian ruble
RUB (₽)
1.6%
13
Hong Kong dollar
HKD ($)
1.4%
14
Singapore dollar
SGD ($)
1.4%
15
Turkish lira
TRY (₺)
1.3%
Other 12%
Total[8] 200%

The value of Norwegian kroner compared to other currencies varies considerably from one year to another, mainly based on changes in oil prices and interest rates. In 2002 the Norwegian krone grew to record high levels against the United States dollar and the Euro. On 2 January 2002, 100 NOK were worth 11.14 USD (1 USD = 8.98 NOK). In July 2002, the krone hit a high at 100 NOK = 13.7 USD (1 USD = 7.36 NOK). In addition to the high level of interest, which increased further on 4 July 2002, to 7 per cent, the price of oil was high. At the time Norway was the world's third largest oil exporter.

In 2005, oil prices reached record levels of more than 60 dollars per barrel. Although interest rates had decreased to around 2 per cent, the Norwegian krone grew even stronger.

However, in late 2007 and early 2008, the USD suffered a steady depreciation against all other major currencies. The Norwegian krone was gaining value at the same time; as a result, the Norwegian krone became stronger than ever compared to the USD, making the USD worth about 5 NOK in April 2008. By October 2008, the USD had recovered and was worth approximately 7 NOK. Following 2009, the NOK has once again seen strong growth, making the USD worth about 5.8 NOK as of the beginning of 2010.

Current NOK exchange rates

From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD INR SEK DKK
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD INR SEK DKK
From XE.com: AUD CAD CHF EUR GBP HKD JPY USD INR SEK DKK
From OANDA.com: AUD CAD CHF EUR GBP HKD JPY USD INR SEK DKK
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD INR SEK DKK

Usage

The Norwegian krone is used in Norway including Svalbard. It is also informally accepted in many shops in Sweden and Finland that are close to the Norwegian border, and also in some shops in the Danish ferry ports of Hirtshals and Frederikshavn. Norwegians spend around 10 billion NOK per year on border shopping since the price levels are higher in Norway than in the neighbouring countries.

See also

References

  1. ^ Bank for International Settlements: Triennial Central Bank Survey p. 12
  2. ^ 50-øre coin to be withdrawn in 2012
  3. ^ Forsikringsselskap utbetalte forlik på 130 000 kroner i småmynt
  4. ^ Notes and coins – Norges Bank
  5. ^ Kroner og øre
  6. ^ "World’s Most Traded Currencies By Value 2012". http://www.investopedia.com/. Retrieved 10 June 2013. 
  7. ^ "Report on global foreign exchange market activity in 2013" (PDF). Triennial Central Bank Survey.  
  8. ^ The total sum is 200% because each currency trade always involves a currency pair.

External links

  • Factors that influence the krone exchange rate, information from Norges Bank in 2000.
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