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Norwegian krone

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Krone
Norsk krone (Norwegian)
100 kroner banknote obverse
ISO 4217
CodeNOK (numeric: 578)
Subunit0.01
Unit
Pluralkroner
Symbolkr‎
Denominations
Subunit
 1⁄100øre
Plural
 øreøre
Banknotes
 Freq. used50, 100, 200, 500 kroner
 Rarely used1000 kroner
Coins1, 5, 10, 20 kroner
Demographics
Date of introduction1875 (1875)
ReplacedNorwegian speciedaler
User(s) Kingdom of Norway
Issuance
Central bankNorges Bank
 Websitewww.norges-bank.no
Valuation
Inflation2.6%
 SourceNorges Bank, August 2024
 MethodConsumer price index

The krone (Norwegian: [ˈkrûːnə], abbreviation: kr (also NKr for distinction); code: NOK), plural kroner, is the currency of the Kingdom of Norway (including overseas territories and dependencies). It was traditionally known as the Norwegian crown in English; however, this has fallen out of common usage. It is nominally subdivided into 100 øre, although the last coins denominated in øre were withdrawn in 2012.

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

The Norwegian krone 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.[2][3]

History

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A 20-crown gold coin dated 1874. 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 Scandinavian currencies were mutually exchangeable at par until 1914 with the suspension of the gold standard due to World War I. After this date, the currencies of Denmark, Norway, and Sweden ceased to be mutually equivalent to each other.

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 of gold). The gold standard was suspended from 1914 to 1916 and from 1920 to 1928, and in 1931 it was permanently suspended. In 1933 the krone was pegged to the pound sterling at 1 pound = 19.9 kroner, and in 1939 the krone was pegged to the U.S. dollar at $1 = 4.4 kroner.[4]

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.[citation needed] After the war, a peg of 1 pound = 20 kroner was established in 1946, equivalent to US$1 = 4.963 kroner before the 1949 devaluation of sterling revised it to US$1 = 7.142 kroner.[4]

In December 1992, the Central Bank of Norway abandoned the fixed exchange rate system in favor of floating exchange rates (managed float) due to the heavy speculation against the Norwegian currency in the early 1990s, which lost[clarification needed] the central bank around two billion kroner in defensive purchases of the NOK through the usage of foreign currency reserves for a relatively short period of time.

Summary of denominations issued

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Denomination Notes Coins
Printed Invalid Comments Minted Invalid Comments
1 øre — 1876–1972 1988 Bronze, iron 1918–1921 & 1941–1945
2 øre — 1876–1972 1988 Bronze, iron 1917–1920 & 1943–1945
5 øre — 1875–1982 1988 Bronze, iron 1917–1920 & 1941–1945
10 øre — 1874–1991 2003 Silver 1874–1919, cupro-nickel 1920–92 (holed 1924–51), zinc 1941–1945
25 øre — 1876–1982 1988 Silver 1876–1919, cupro-nickel 1921–82 (holed 1921–50), zinc 1943–1945
50 øre — 1874–2012 2012 Silver 1874–1919, cupro-nickel 1920–96 (holed 1920–49), zinc 1941–1945, bronze 1996–2012
1 krone 1917–1925
1940–1950		 1926
1999 		Wartime "coin notes" 1875– — Silver 1875–1917, cupro-nickel 1925– (holed 1925–1951, 1997–)
2 kroner 1918–1925
1940–1950 		1926
1999		 Wartime "coin notes" 1876–1917 1922 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][7][8][9]

Coins

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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 2+1⁄2 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 in 1920. Between 1917 and 1921, iron temporarily replaced bronze. 1917 also saw the last issuance of 2 kroner coins. During the German occupation of Norway 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.

  • The obverse of a 1940 Norwegian krone.
    The obverse of a 1940 Norwegian krone.
  • The reverse of the 1940 krone.
    The reverse of the 1940 krone.

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 the 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 that are currently legal tender, with the exception of the 50 øre coin which was withdrawn on 1 May 2012. It was withdrawn because it was no longer circulating as an ordinary coin used for payment.[10] However, banks in Norway still exchanged 50 øre coins for higher values until 2022.

Currently circulating coins
Image Value Technical parameters Description Issued since
Obverse Reverse 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.

Coins and banknotes of the Norwegian krone 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.[11]

Use of 10 Syrian pound coins in Norway

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The characteristics of the ten Syrian pound (LS 10) coin have been found to so closely resemble the Norwegian 20 kroner (NKr 20) coin that it can fool vending machines, coins-to-cash machines, arcade machines, and any other coin-operated, automated service machine in the country. Machines are unable to tell the coins apart, owing to their almost identical weight and size.

As of mid-February 2017, LS 10 was worth NKr 0.39, making the 20-kroner coin 51.5 times more valuable than the 10-pound 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 18 February 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 day suspended sentence, for having used Syrian coins in arcade machines in the municipality of Bærum.[12]

Banknotes

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Main article: Banknotes of the Norwegian krone

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

Current series
Image Value Dimensions
(millimeters)		 Main Color Design First issue
Obverse Reverse Obverse Reverse
50 kr 126 × 70 Green Utvær Lighthouse Stylized lighthouse beacon and Karlsvogna (Big Dipper) 2018
100 kr 133 × 70 Red Gokstad ship Stylized Container ship, a globe, and Orion 2017
200 kr 140 × 70 Blue Codfish Stylized fishing boat, a fishing net, and a beacon 2017
500 kr 147 × 70 Orange Rescue vessel RS 14 Stavanger Stylized oil platform, gas pipeline networks from the North Sea, and an ammonite 2018
1000 kr 154 × 70 Purple Wave in the sea Stylized horizon and water molecules 2019
These images are to scale at 0.7 pixel per millimetre. For table standards, see the banknote specification table.

Exchange rates

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Most traded currencies by value
Currency distribution of global foreign exchange market turnover[13]
Currency ISO 4217
code 		Symbol or
Abbrev.[14] 		Proportion of daily volume Change
(2019–2022)
April 2019 April 2022
U.S. dollar USD $, US$ 88.3% 88.5% Increase 0.2pp
Euro EUR € 32.3% 30.5% Decrease 1.8pp
Japanese yen JPY ¥, 円 16.8% 16.7% Decrease 0.1pp
Sterling GBP £ 12.8% 12.9% Increase 0.1pp
Renminbi CNY ¥, 元 4.3% 7.0% Increase 2.7pp
Australian dollar AUD $, A$ 6.8% 6.4% Decrease 0.4pp
Canadian dollar CAD $, Can$ 5.0% 6.2% Increase 1.2pp
Swiss franc CHF Fr., fr. 4.9% 5.2% Increase 0.3pp
Hong Kong dollar HKD $, HK$, 元 3.5% 2.6% Decrease 0.9pp
Singapore dollar SGD $, S$ 1.8% 2.4% Increase 0.6pp
Swedish krona SEK kr, Skr 2.0% 2.2% Increase 0.2pp
South Korean won KRW ₩, 원 2.0% 1.9% Decrease 0.1pp
Norwegian krone NOK kr, Nkr 1.8% 1.7% Decrease 0.1pp
New Zealand dollar NZD $, $NZ 2.1% 1.7% Decrease 0.4pp
Indian rupee INR ₹ 1.7% 1.6% Decrease 0.1pp
Mexican peso MXN $, Mex$ 1.7% 1.5% Decrease 0.2pp
New Taiwan dollar TWD $‎, NT$, 圓 0.9% 1.1% Increase 0.2pp
South African rand ZAR R 1.1% 1.0% Decrease 0.1pp
Brazilian real BRL R$ 1.1% 0.9% Decrease 0.2pp
Danish krone DKK kr., DKr 0.6% 0.7% Increase 0.1pp
Polish złoty PLN zł‎, Zl 0.6% 0.7% Increase 0.1pp
Thai baht THB ฿, B 0.5% 0.4% Decrease 0.1pp
Israeli new shekel ILS ₪, NIS 0.3% 0.4% Increase 0.1pp
Indonesian rupiah IDR Rp 0.4% 0.4% Steady
Czech koruna CZK Kč, CZK 0.4% 0.4% Steady
UAE dirham AED د.إ, Dh(s) 0.2% 0.4% Increase 0.2pp
Turkish lira TRY ₺, TL 1.1% 0.4% Decrease 0.7pp
Hungarian forint HUF Ft 0.4% 0.3% Decrease 0.1pp
Chilean peso CLP $, Ch$ 0.3% 0.3% Steady
Saudi riyal SAR ﷼, SRl(s) 0.2% 0.2% Steady
Philippine peso PHP ₱ 0.3% 0.2% Decrease 0.1pp
Malaysian ringgit MYR RM 0.2% 0.2% Steady
Colombian peso COP $, Col$ 0.2% 0.2% Steady
Russian ruble RUB ₽, руб 1.1% 0.2% Decrease 0.9pp
Romanian leu RON —, leu 0.1% 0.1% Steady
Peruvian sol PEN S/ 0.1% 0.1% Steady
Other currencies 2.0% 2.4% Increase 0.4pp
Total 200.0% 200.0%
The cost of one euro in Norwegian krone (from 1999)

The value of the 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 kroner were worth US$11.14 ($1 = 8.98 kroner). In July 2002, the krone hit a high at 100 kroner = $13.7 ($1 = 7.36 kroner). In addition to the high level of interest, which increased further on 4 July 2002, to 7 percent, 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 percent, the Norwegian krone grew even stronger.

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

Since the mid-2010s, the Norwegian krone has been slowly but steadily weakening against most currencies.[15] This presents a mystery, as Norway's economy has been strong and growing, and the decline cannot be fully explained by either oil price changes or interest rate differences between countries.[15] However, as of 2024, the krone is still overvalued based on the Big Mac Index.[15]

Current NOK exchange rates
From Google Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD DKK SEK
From Yahoo! Finance: AUD CAD CHF CNY EUR GBP HKD JPY USD DKK SEK
From XE.com: AUD CAD CHF CNY EUR GBP HKD JPY USD DKK SEK
From OANDA: AUD CAD CHF CNY EUR GBP HKD JPY USD DKK SEK

See also

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Notes

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References

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  1. ^ Bank for International Settlements: Triennial Central Bank Survey Archived 27 October 2011 at the Wayback Machine p. 12
  2. ^ "Mest mat i handlekurven" (in Norwegian Bokmål). ssb.no. 12 July 2011. Archived from the original on 8 August 2016. Retrieved 12 April 2016.
  3. ^ "NOK 14.1 billion in cross border trade". ssb.no. Archived from the original on 8 August 2016. Retrieved 12 April 2016.
  4. ^ a b "History of Norges Bank". 23 November 2020. Archived from the original on 28 June 2022. Retrieved 23 April 2022.
  5. ^ "Notes and coins". norges-bank.no. Archived from the original on 2 March 2021. Retrieved 16 March 2021.
  6. ^ "Kroner og øre". dokpro.uio.no. Archived from the original on 9 June 2024. Retrieved 16 March 2021.
  7. ^ "Felles nettbutikk for Mynt & Seddel og Skanfil". skanfil.no. Archived from the original on 18 March 2021. Retrieved 16 March 2021.
  8. ^ "Numisma Mynthandel". numisma.no. Archived from the original on 6 March 2021. Retrieved 16 March 2021.
  9. ^ "50-øringen snart historie – Lovdata". lovdata.no. Archived from the original on 18 December 2022. Retrieved 16 March 2021.
  10. ^ "50-øre coin to be withdrawn in 2012". Archived from the original on 20 May 2011. Retrieved 24 May 2011.
  11. ^ Aas, Magnus Lutnæs (9 August 2014). "Forsikringsselskap utbetalte forlik på 130 000 kroner i småmynt". dagbladet.no. Archived from the original on 8 March 2021. Retrieved 16 March 2021.
  12. ^ Andersen, Øystein (18 February 2006). "Myntsvindlere herjer i Oslo". Dagbladet (in Norwegian). DB Medialab AS. Archived from the original on 21 March 2009. Retrieved 8 March 2008.
  13. ^ Triennial Central Bank Survey Foreign exchange turnover in April 2022 (PDF) (Report). Bank for International Settlements. 27 October 2022. p. 12. Archived (PDF) from the original on 27 October 2022.
  14. ^ "Currency Units". Editorial Style Guide (PDF). World Bank Publications. p. 134–139.
  15. ^ a b c "Norway's weak currency presents a mystery". The Economist. ISSN 0013-0613. Archived from the original on 14 September 2024. Retrieved 15 September 2024.
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