Currency - Danish krone

Currency  >  Danish krone

Danish krone

kr
The krone (plural: kroner; sign: kr.; code: DKK) is the official currency of Denmark, Greenland, and the Faroe Islands, introduced on 1 January 1875. Both the ISO code "DKK" and currency sign "kr." are in common use; the former precedes the value, the latter in some contexts follows it. The currency is sometimes referred to as the Danish crown in English, since krone literally means crown. Historically, krone coins have been minted in Denmark since the 17th century.

One krone is subdivided into 100 øre (singular and plural), the name øre possibly deriving from Latin aureus meaning "gold coin", or more plausibly from Latin as, pl aeres, meaning "bronze coin", from aes, aeris, "bronze". Altogether there are eleven denominations of the krone, with the smallest being the 50 øre coin, which is valued at one half of a krone. Formerly there were more øre coins, but those were discontinued due to inflation.

The krone is pegged to the euro via the ERM II, the European Union's exchange rate mechanism. Adoption of the euro is favoured by some of the major political parties, however a 2000 referendum on joining the Eurozone was defeated with 53.2% voting to maintain the krone and 46.8% voting to join the Eurozone.

The oldest known Danish coin is a penny (penning) struck 825–840, but the earliest systematic minting produced the so-called korsmønter or "cross coins" minted by Harald Bluetooth in the late 10th century. Organised minting in Denmark was introduced on a larger scale by Canute the Great in the 1020s. Lund, now in Sweden, was the principal minting place and one of Denmark's most important cities in the Middle Ages, but coins were also minted in Roskilde, Slagelse, Odense, Aalborg, Århus, Viborg, Ribe, Ørbæk and Hedeby. For almost 1,000 years, Danish kings – with a few exceptions – have issued coins with their name, monogram and/or portrait. Taxes were sometimes imposed via the coinage, e.g., by the compulsory substitution of coins handed in by new coins handed out with a lower silver content.

Danish coinage was generally based on the Carolingian silver standard. Periodically, the metal value of the minted coins was reduced, and thus did not correspond to the face value of the coins. This was mainly done to generate income for the monarch and/or the state. As a result of the debasement, the public started to lose trust in the respective coins. Danish currency was overhauled several times in attempts to restore public trust in the coins, and later in issued paper money.

In 1619 a new currency was introduced in Denmark, the krone (crown). One krone had the value of 1 1/2 Danish Rigsdaler Species accounting for 96 Kroneskillinger, later for 144 common Skillings.

Until the late 18th century, the krone was a denomination equal to 8 mark, a subunit of the Danish rigsdaler. A new krone was introduced as the currency of Denmark in January 1875. It replaced the rigsdaler at a rate of 2 kroner = 1 rigsdaler. This placed the krone on the gold standard at a rate of 2480 kroner = 1 kilogram fine gold. The latter part of the 18th century and much of the 19th century saw expanding economic activity and thus also a need for means of payment that were easier to handle than coins. Consequently, banknotes were increasingly used instead of coins.

The introduction of the new krone was a result of the Scandinavian Monetary Union, which came into effect in 1873 (with the coins being adopted two years later) and lasted until World War I. The parties to the union were the three Scandinavian countries, where the name was krone in Denmark and Norway and krona in Sweden, a word which in all three languages literally means crown. The three currencies were on the gold standard, with the krone/krona defined as 1⁄2480 of a kilogram of pure gold.

The Scandinavian Monetary Union came to an end in 1914 when the gold standard was abandoned. Denmark, Sweden and Norway all decided to keep the names of their respective and now separate currencies.

Denmark returned to the gold standard in 1924 but left it permanently in 1931. Between 1940 and 1945, the krone was tied to the German Reichsmark. Following the end of the German occupation, a rate of 24 kroner to the British pound was introduced, reduced to 19.34 (4.8 kroner = 1 US dollar) in August the same year. Within the Bretton Woods System, Denmark devalued its currency with the pound in 1949 to a rate of 6.91 to the dollar. A further devaluation in 1967 resulted in rates of 7.5 kroner.

Country

Denmark

Denmark (Danmark, ), officially the Kingdom of Denmark, is a Nordic country and the southernmost of the Scandinavian nations. Denmark lies southwest of Sweden and south of Norway, and is bordered to the south by Germany. The Kingdom of Denmark also comprises two autonomous constituent countries in the North Atlantic Ocean: the Faroe Islands and Greenland. Denmark proper consists of a peninsula, Jutland, and an archipelago of 443 named islands, with the largest being Zealand, Funen and the North Jutlandic Island. The islands are characterised by flat, arable land and sandy coasts, low elevation and a temperate climate. Denmark has a total area of 42924 km2, land area of 42394 km2, and the total area including Greenland and the Faroe Islands is 2210579 km2, and a population of 5.8 million.

The unified kingdom of Denmark emerged in the 10th century as a proficient seafaring nation in the struggle for control of the Baltic Sea. Denmark, Sweden, and Norway were ruled together under one sovereign ruler in the Kalmar Union, established in 1397 and ending with Swedish secession in 1523. The areas of Denmark and Norway remained under the same monarch until 1814, often referred to as the Dano-Norwegian Realm, or simply Denmark-Norway. Beginning in the 17th century, there were several devastating wars with the Swedish Empire, ending with large cessions of territory to Sweden. After the Napoleonic Wars, Norway was ceded to Sweden, while Denmark kept the Faroe Islands, Greenland, and Iceland. In the 19th century there was a surge of nationalist movements, which were defeated in the 1864 Second Schleswig War. Denmark remained neutral during World War I. In April 1940, a German invasion saw brief military skirmishes while the Danish resistance movement was active from 1943 until the German surrender in May 1945. An industrialised exporter of agricultural produce in the second half of the 19th century, Denmark introduced social and labour-market reforms in the early 20th century that created the basis for the present welfare state model with a highly developed mixed economy.

Faroe Island

The Faroe Islands (Føroyar, ; Færøerne, ), or the Faeroe Islands—a North Atlantic archipelago located 200 mi north-northwest of the United Kingdom and about halfway between Norway and Iceland—are an autonomous country of the Kingdom of Denmark. Total area is about 540 sqmi with a population of 50,322 in October 2017.

The terrain is rugged; the climate is subpolar oceanic climate (Cfc)—windy, wet, cloudy, and cool. Temperatures average above freezing throughout the year because of the Gulf Stream.

Greenland

Greenland (Kalaallit Nunaat, ; Grønland, ) is an autonomous constituent country of the Kingdom of Denmark between the Arctic and Atlantic oceans, east of the Canadian Arctic Archipelago. Though physiographically a part of the continent of North America, Greenland has been politically and culturally associated with Europe (specifically Norway and Denmark, the colonial powers, as well as the nearby island of Iceland) for more than a millennium. The majority of its residents are Inuit, whose ancestors began migrating from the Canadian mainland in the 13th century, gradually settling across the island.

Greenland is the world's largest island (Australia and Antarctica, both larger than Greenland, are generally considered to be continental landmasses rather than islands). Three-quarters of Greenland is covered by the only permanent ice sheet outside Antarctica. With a population of about 56,480 (2013), it is the least densely populated territory in the world. About a third of the population live in Nuuk, the capital and largest city. The Arctic Umiaq Line ferry acts as a lifeline for western Greenland, connecting the various cities and settlements.

Language

Danish krone (English)  Corona danese (Italiano)  Deense kroon (Nederlands)  Couronne danoise (Français)  Dänische Krone (Deutsch)  Coroa dinamarquesa (Português)  Датская крона (Русский)  Corona danesa (Español)  Korona duńska (Polski)  丹麥克朗 (中文)  Dansk krona (Svenska)  Coroană daneză (Română)  デンマーク・クローネ (日本語)  Данська крона (Українська)  덴마크 크로네 (한국어)  Tanskan kruunu (Suomi)  Krona Denmark (Bahasa Indonesia)  Danijos krona (Lietuvių)  Danske kroner (Dansk)  Dánská koruna (Česky)  Danimarka kronu (Türkçe)  Данска круна (Српски / Srpski)  Taani kroon (Eesti)  Dánska koruna (Slovenčina)  Dán korona (Magyar)  Danska kruna (Hrvatski)  โครเนอเดนมาร์ก (ไทย)  Dānijas krona (Latviešu)  Κορόνα Δανίας (Ελληνικά)  Krone Đan Mạch (Tiếng Việt) 
 mapnall@gmail.com