Danes have one of the oldest monetary units in all of Europe. Her age exceeds 140 years. At the same time, euro and kroons are in circulation on the territory of the state, and the financial sector is characterized by a high level of development of monetary relations denominated in national currency.
The characteristic of the national currency of Denmark
The official monetary instrument used in domestic and foreign payments in Denmark is the Danish krone. The name of the currency comes from the Scandinavian language, translated means "crown". In addition, there are other banknotes in circulation:
- Faroe Krona is a means of payment that is in exclusive circulation on the islands of the same name, which are the autonomous region of Denmark. This currency is exchanged at the rate of 1 to 1.
- Euro is freely used throughout the country.
The Danish currency contains a fractional part: 1 kroon is equal to 100 era.
Residents of the peninsula use banknotes and coins of several editions. All banknotes issued since 1945 have the right to be used, while they can be freely exchanged for modern banknotes.
Danish Currency History
The Krone, as the national currency of Denmark, first appeared in 1873, it replaced the previous rickstaller. Its appearance was initiated by the increased demand of the state for its own competitive currency at that time.
For some time, Denmark, Norway and Sweden had a single monetary unit as part of the economic and political process of unification, called the "Scandinavian Monetary Union." The payment instrument in this period was the krona.
In 1914, the union collapsed: states returned to the use of national currencies. For example, Sweden changed the standards for coinage, so that Danish and Norwegian money lost value on its territory. In Denmark, the krona again entered the circulation.
Denmark's currency suffered a crisis after World War II: German occupation led to the forced attachment of the crown to the German re-mark. Post-war economic complications led to its significant devaluation, but by the beginning of the 70s it had recovered in value. In 1991, the Central Bank of Denmark, in order to fulfill its target obligations in matters of monetary policy, announced the peg to the euro.
Denomination and appearance of the currency of Denmark
The Danish currency is represented by a group of banknotes and coins of different denominations. The design of paper notes contains images of objects of national architecture, in particular bridges, as well as historically significant values.
If we consider the modern series of banknotes of 2009 issued in Denmark, then we can distinguish the following features of banknotes of different denominations:
- 50 CZK: on the front side is the Sallingsund Bridge, on the back there is a vessel found during archaeological excavations near the city of Scarpsalling;
- 100 CZK: on the front side - the Small Belt bridge, on the back - the Hinsgavl dagger;
- 200 CZK: on the front side is the Knippelsbrough bridge, on the back there is a belt plate found as a result of archaeological excavations;
- 500 CZK: on the front side is the Queen Alexandrina Bridge, on the back there is a bronze vessel;
- 1000 kroons: on the front is the Big Belt bridge, on the back is a solar wagon found during archaeological excavations.
The patterns on the coins were made by skilled craftsmen: the design was worked out with an emphasis on national folklore, and minting is done exclusively on the machines of our own mint. In circulation are coins of the following denomination: 50 era, 1, 2, 5, 10, 20 kroons.
Danish krone to ruble and other currencies
In the international financial market, the acronym DKK is used to denote Danish krona. The dynamics of the Danish krone exchange rate has a direct correlation with changes in the euro relative to a basket of world currencies. For example, a 1% reduction in the price of a EUR / GBP pair will similarly be reflected in DKK / GBP quotes.
At the beginning of 2016, the market rate of the krona against a number of world currencies:
- USD / DKK - 6.8672
- EUR / DKK - 7.4627
- GBP / DKK - 9.9228
- CAD / DKK - 4.7870
- AUD / DKK - 4.7795
- NZD / DKK - 4.4832
- RUB / DKK - 0.0900
The ratio of the krona to the Russian ruble is cross-cutting, fully repeating the dynamics of price changes for the euro / ruble pair.
