Norwegian krone

Norwegian krone
norsk krone (Norwegian)

ISO 4217 code NOK
Central bank Norges Bank
 Website www.norges-bank.no
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 [ˈkɾuːnə] (sign: kr; code: NOK), plural kroner, is the currency of Norway and its dependent territories. It is subdivided into 100 øre, which exist only electronically since 2012. The name translates into English as crown.

The krone was the thirteenth most traded currency in the world by value in April 2010, down three positions from 2007.[1]

History

A 20-crown gold coin. The text '124 Stk. 1 Kil. f. G.' means that 124 pieces gave one kilogram of pure gold

The krone was introduced in 1875, replacing the Norwegian speciedaler/spesidaler 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. After its dissolution, Denmark, Norway, and Sweden all decided to keep the names of their respective and since then separate currencies.

Within the Scandinavian Monetary Union, the krone was on a gold standard of 2,480 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. It 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. Nonetheless, Norway would continue to hold the Kingdom's gold reserves.

During the German occupation (1940–1945) in the Second World War, the krone was initially pegged to the Reichsmark at a rate of 1 krone = 0.6 Reichsmark, later reduced to 0.57. After the war, a rate of 20 kroner = 1 pound (4.963 kroner = 1 U.S. dollar) was established. The rate to the pound was maintained in 1949, when the pound devalued relative to the U.S. dollar, leading to a rate of 7.142 kroner = 1 U.S. dollar. In December 1992, the Central Bank of Norway abandoned the fixed exchange rate in favor of a floating exchange rate (managed float) due to the heavy speculation against the Norwegian currency in the early 1990s, which lost the 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.

Coins of the NOK as of 2015

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 coin specification table.

The 10- and 20-kroner coins carry the effigy of the current monarch. 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 is Alt for Norge, meaning "Everything for Norway") is also inscribed on the 10-kroner coin.

The coins and banknotes are distributed by 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]

Use of 10 Syrian pound coins in Norway

The shape of the 10 Syrian pound coin has been found to so resemble the 20 Norwegian krone coin that it can fool vending machines, coins-to-cash machines, arcade machines, and any other coin-operated, automated service machine in the country. While they are hardly similar to the naked eye, machines are unable to tell the coins apart due to an almost identical weight and size.

As of February 1, 2014, ten Syrian pounds converts to 0.44 Norwegian kroner. 20 NOK is over 45.4 times the value of the Syrian coin. While not easy to find in Norway, the Syrian coins are still used in automated machines there with such frequency that Posten Norge, the Norwegian postal service, decided to close many of their coins-to-cash machines on February 18, 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 days, suspended, for having used Syrian coins in arcade machines in the municipality of Bærum.[4]

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. For table standards, see the banknote specification table.

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:[5][6] Bergen Mynt og Seddel, Numisma Mynthandel, Lovdata

Exchange rates

Most traded currencies by value
Currency distribution of global foreign exchange market turnover[7][8]
Rank Currency ISO 4217 code
(symbol) 		% daily share
(April 2013)
1
  United States dollar
USD ($)
 87.0%
2
  Euro
EUR (€)
 33.4%
3
  Japanese yen
JPY (¥)
 23.0%
4
  Pound sterling
GBP (£)
 11.8%
5
  Australian dollar
AUD ($)
 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
 Norwegian krone
NOK (kr)
 1.4%
15
  Singapore dollar
SGD ($)
 1.4%
16
  Turkish lira
TRY (₺)
 1.3%
17
 South Korean won
KRW (₩)
 1.2%
18
 South African rand
ZAR (R)
 1.1%
19
 Brazilian real
BRL (R$)
 1.1%
20
 Indian rupee
INR (₹)
 1.0%
Other 6.3%
Total[9] 200%

The value of Norwegian krone 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.

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: AUD CAD CHF EUR GBP HKD JPY USD INR SEK DKK
From TransferWise: AUD CAD CHF EUR GBP HKD JPY USD INR SEK DKK
From OANDA: 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
From Currency.Wiki: AUD CAD CHF EUR GBP HKD JPY USDINR 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 spent 14.1 billion NOK on border shopping in 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.[10][11]

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. ↑ Andersen, Øystein (2006-02-18). "Myntsvindlere herjer i Oslo". Dagbladet (in Norwegian) (DB Medialab AS). Retrieved 2008-03-08.
  5. ↑ Notes and coins – Norges Bank
  6. ↑ Kroner og øre
  7. ↑ "World’s Most Traded Currencies By Value 2012". investopedia.com. Retrieved 10 June 2013.
  8. ↑ "Report on global foreign exchange market activity in 2013" (PDF). Triennial Central Bank Survey. Basel, Switzerland: Bank for International Settlements. April 2013. p. 12. Retrieved 22 October 2013.
  9. ↑ The total sum is 200% because each currency trade always involves a currency pair.
  10. ↑ "Mest mat i handlekurven". ssb.no (in Norwegian Bokmål). Retrieved 2016-04-12.
  11. ↑ "NOK 14.1 billion in cross border trade". ssb.no. Retrieved 2016-04-12.

External links

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