Norwegian krone

Norwegian krone
norsk krone/norsk krona (Norwegian)
ISO 4217 code	NOK
User(s)	Norway  Svalbard 3 Norwegian territories Bouvet Island Queen Maud Land Peter I Island
Inflation	2.3%
Source	The World Factbook, 2006 est.
Subunit
1/100	øre
Symbol	kr, ,-
Plural	kroner
øre	øre
Coins	50 øre, 1, 5, 10, 20 kr
Banknotes	50, 100, 200, 500, 1000 kr
Central bank	Norges Bank
Website	www.norges-bank.no

The krone [ˈkɾuːnə] (or krona^[1][2]) (sign: kr; code: NOK) is the currency of Norway and its dependent territories. The plural form is kroner (or kronor ^[3]). It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown". The Norwegian krone is the thirteenth most traded currency in the World by value.^[4]

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 German occupation in World War II, the krone was pegged to the Reichsmark at a rate of 1 krone = 0.6 Reichsmark initially, 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 Norges Bank (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 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.

This is the current Norges Bank NOK policy.^[5]

Coins

Main article: Coins of the Norwegian krone

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 (this last, introduced in 1994).

Currently Circulated Coins
Value	Technical parameters				Description
	Diameter	Thickness	Mass	Composition	Edge	Obverse	Reverse
50 øre	18.5 mm	1.7 mm	3.6 g	97% Cu, 2,5% Zn, 0,5% Sn	Smooth	King's crown	Fabulous animal
1 krone	21 mm	1.7 mm	4.35 g	Cupronickel 75% Cu, 25% Ni	Smooth	Harald V's monogram	a fowl
5 krone	26 mm	2 mm	7.85 g		Milled	St. Olav's Order	acanthi leaves
10 krone	24 mm	2 mm	6.8 g	81% Cu, 10% Zn, 9% Ni	Interrupted milling	Harald V	stave church roof
20 krone	27.5 mm	2.2 mm	9.9 g		Smooth		Viking ship
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.

Norges Bank has announced that the 50-øre coin will no longer be legal tender starting May 1, 2012. It will be withdrawn because it no longer circulates as an ordinary coin used for payment. ^[6]

Banknotes

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, 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.

Banknotes

50 kr; Peter Christen Asbjørnsen, water lillies.

100 kr; Kirsten Flagstad, Folketeateret in Oslo's concert hall.

200 kr; Kristian Birkeland, map of the northern polar region and aurora.

500 kr; Sigrid Undset, a wreath from the trilogy of Kristin Lavransdatter.

1000 kr; Edvard Munch, excerpt from Munch's wall painting "The Sun".

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	2022	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:,,^[7][8] Bergen Mynt og Seddel, Numisma Mynthandel http://lovdata.no/nyhet/2011/20110318-2135.html

Exchange rates

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.

As of 2009 the Norwegian krone is the tenth most traded currency on the foreign exchange market.

Current NOK exchange rates

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

See also

• Table of historical exchange rates
• Scandinavian Monetary Union
• Swedish krona
• Danish krone
• Icelandic króna
• Economy of Norway

References

1. ^ The Nynorsk Dictionary - search for "krona"
2. ^ The Nynorsk Dictionary - grammatical table
3. ^ The Nynorsk Dictionary - search for "kronor"
4. ^ Bank for International Settlements: Triennial Central Bank Survey
5. ^ Factors that influence the krone exchange rate
6. ^ 50-øre coin to be withdrawn in 2012
7. ^ Notes and coins - Norges Bank
8. ^ Kroner og øre

External links