Norwegian krone

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Norwegian krone
Norsk krone ( Bokmål / Nynorsk )
Image description is missing
Country: NorwayNorway Norway
and dependent areas
Subdivision: 100 Øre
ISO 4217 code : NOK
Abbreviation: nkr, kr
Exchange rate :
(August 28, 2020)

1  EUR  = 10.47 NOK
1 NOK = 0.096 EUR

1  CHF  = 9.732 NOK
1 NOK = 0.103 CHF

The Norwegian krone has been the official national currency of Norway and its dependent territories since 1875 .

The Monetary Act of April 17, 1875 established the krona as the single currency and represented a turning point in the history of Norwegian monetary system. In the course of this, the sub-currency Øre and the decimal system were introduced. The crown replaces the previous currency “ Specie-Taler ” and “ Skilling ”. One krona corresponds to 100 Øre, but this denomination has lost its importance due to long-term inflation. No Øre coins have been in circulation since May 2, 2012; last the 50 Øre were withdrawn from circulation.

Norway within Europe

history

The oldest known Norwegian coin dates from about the year 1000. It is a Penny , of Olav Tryggvason is credited. For a long time no coins were minted in Norway, as Norway was satisfied with the import of foreign coins.

In 1628 a mint was established in Christiania, today's Oslo . This worked with silver from the mines and works in Kongsberg . In 1686 artistic production was relocated to Kongsberg. The first banknotes were introduced in Norway in 1695.

The first central bank was founded in 1736. It was a private bank that was nevertheless subject to royal decree. The bank's job was to issue notes. The government could also borrow money here. Soon, however, there were far too many notes in circulation as there was no limit to the notes issued. In 1791 a new bank was founded to clean up the monetary system, the "Den Danske og Norske Speciebank". That didn't help either, as the government continued to use the bank to fund its expenses. In 1799 the bank was finally replaced by "Deposito-Cassen".

In 1816, two years after Denmark separated from the union with Sweden, Norges Bank was founded. In the period after the founding of the Norges Bank, the Rigsdaler lost value. By law of June 4, 1873, the Storting decided that the terms crown and Øre could be used in parallel with thaler and daler , and the gold standard was introduced. In 1875 it was decided that the krona would become the unit of currency in Norway, so that Norway could join the Scandinavian Coin Union on October 16, 1875 .

During the First World War , the export of gold and silver was banned. During this time, the volume of the notes quadrupled. The crown was still valued. Inflation and a high volume of imports led to a crisis in 1920 and reduced confidence in the krona. On September 27, 1931, the gold standard was abolished. Norway and the other Nordic countries were determined to prevent harmful fluctuations.

In 1945 a currency reform was carried out to prevent inflation. On May 24, 1985, a new Norges Bank and Monetary Act came into force (Central Bank Lov). The bank was no longer a limited liability company (GmbH), but became an independent legal entity owned by the state.

On May 5, 1994 a guideline for the fluctuating krona exchange rates was drawn up. In 1998, the first complete replacement of a coin series since 1875 was completed. The law on payment systems came into force in 2000. The law regulates the responsibilities of Norges Bank and monitors the payment systems. In 2001 the new regulation on monetary policy was passed by the State Council.

The Scandinavian Coin Union

Europe, 1872
The Scandinavian countries Sweden , Norway and Denmark were forced to change their monetary policy as soon as possible because their most important trading partners used the gold standard . Germany had had the uniform gold mark since 1871, the successful gold sovereign had been circulating in Great Britain for a long time, and in most other southern and eastern European countries gold and silver coins have been minted according to the standards of the Latin Monetary Union (LMU) since 1865 . Without a single, secure currency, Scandinavia would be economically sidelined. Each country sets the value of its currency to gold in a so-called gold standard. Paper money can therefore be completely exchanged for gold at the central banks, since the value of the money is directly linked to the value of the gold. As it is today, gold was worth the same all over the world. Thus international capital transactions were possible through the gold standard. The gold standard has been in existence as the basis for international currency matters since 1870. Previous differences between the value of gold and silver were eliminated with the establishment of the Latin Monetary Union in 1865. This introduced a fixed exchange ratio between gold and silver coins.

As early as 1862, Norway, Sweden and Denmark had been in negotiations about measures in the monetary system and about rapprochement with foreign currency systems. For Sweden the negotiations took too long. That's why they wanted to join the LMU. Between 1868 and 1872, Sweden minted gold coins with a face value of 10 francs or 1 carolin according to the guidelines of the LMU. Today this coin is in great demand as only around 81,000 copies were minted in a period of 5 years. The introduction of the gold standard in 1871 in the German Empire was the decisive factor for the final establishment of the Scandinavian Coin Union (SMU). On December 18, 1872, the founding contract for the SMU, also known as the Nordic Mint Association, was signed. At this point in time, the three Scandinavian states had not yet agreed on the treaty points. However, Norway only introduced an additional convention into the treaty in 1877 . Norway wanted to demonstrate a piece of independence from Sweden. Sweden was linked to Norway in a personal union since 1814 . Norway minted gold coins according to the standards of the SMU as early as 1874. These were minted with a double value in both crowns and “speciestaler”. Speciestaler was the currency in Norway since 1816.

Iceland , which had been in Danish possession since 1380 , also belonged to the Scandinavian Coin Union . It only became independent in 1918 and introduced its first own coins in 1922.

The joint introduction of a gold currency with a decimal system was justified by the Union Treaty. The only difference between the coins is the national coinage. From then on, the Danish, Swedish and Norwegian kroner (Kroner) were swapped 1: 1: 1. There were three different gold coins for 5, 10 and 20 crowns as part of the SMU.

After the Scandinavian adaptation in 1879, Japan and the USA , 1892 Austria , 1897 Russia and 1900 other countries such as Argentina , Peru and Mexico adopted the gold standard for their currencies .

Already during the First World War from 1914 to 1918 there was exploitation of exchange rate differences between the individual countries. Norwegian and Danish banknotes flowed into Sweden. There they could be exchanged for gold at a profit. Since this imbalance in the flow of money could not go well in the long term, foreign coins were abolished as legal tender within a country of the SMU in 1924. This meant the de facto end of the SMU. However, the gold standard continued to exist until it was repealed in 1931 in favor of the introduction of a paper currency. The Scandinavian Coin Union, in which 13 different gold coin types from the three participating states were minted, existed for almost 50 years.

After the dissolution of the monetary union, all three countries decided to keep the "krone" as the name of their respective, now independent, national currencies.

The Norwegian Central Bank

Norwegian Central Bank (Norges Bank)

The central bank of Norway is Norges Bank. It was founded in 1816 by Storting , the Norwegian parliament. The central bank is now based in Oslo. Before that she was in Trondheim . The central bank is responsible for determining the key interest rate and issuing the Norwegian krone. It is also responsible for managing part of the state funds.

Banknotes and coins

The following banknotes and coins are legal tender:

Exchange rate of the euro in kroner since 1999

Banknotes

Norwegian banknotes are available in sizes of 50, 100, 200, 500 and 1000 kroner. All banknotes are different in size. This increases, both in length and in width, with increasing monetary value. The previous series 7 shows Norwegian artists and scientists. New Series VIII banknotes have been issued since May 2017, initially the 100 and 200 kroner notes. The theme of Series VIII is Norway's maritime history. Series VII banknotes are valid for one year after the issue of the replacing Series VIII banknote. After that, they can be exchanged at Norges Bank branches for another ten years .

Note value size colour Main subject Issue date
50 crowns 126 × 70 mm green Utvær lighthouse October 18, 2018
100 crowns 133 × 70 mm red Gokstad ship May 30, 2017
200 crowns 140 × 70 mm blue cod May 30, 2017
500 crowns 147 × 70 mm brown Rescue ship RS 14 "Stavanger" October 18, 2018
1000 crowns 154 × 70 mm violet A wave in the open sea November 14, 2019

50 kroner
On the front of the Series VIII banknote is the Utvær lighthouse, which is located in Solund municipality . It was built in 1900 and is the westernmost land point in Norway. There is a puffin at the top right of the front . This is also shown here on all other Series VIII banknotes. The light signal of a lighthouse can be seen in the pattern on the back. At the top right you can see the partial constellation of large wagons and at the bottom right you can see the sector division of a beacon on a sea map.

100 kroner
The front of the new banknote, issued since May 2017, shows the Gokstad ship, Norway's largest surviving Viking ship. The reverse shows an abstract motif with the silhouette of a container ship and the constellation Orion. The banknote with the portrait of the singer Kirsten Flagstad has been invalid since May 30, 2018.

200 kroner
The theme of the new 200 kroner note is 'The sea that feeds us'. The main motif of the banknote shows a cod and herrings in front of a fishing net. The abstract motif on the back shows the vague outline of a fishing boat on the moving sea. The banknote with the portrait of Kristian Birkeland is invalid as of May 30, 2018.

500 crowns
The RS 14 “Stavanger” lifeboat is shown on the front of the Series VIII banknote. It was built at the Archers shipyard in Larvik, completed in 1901 and has been in active service with the rescue company for 37 years. On the back you can see an oil rig on the horizon in the pattern. The white lines show parts of the gas transport network from Norway to other countries.

1,000 crowns
The main motif on the front is a wave on the open sea. It should show both the opposing force we have to fight against and the driving force that brings us forward. On the back you can see the open sea on the horizon in the pattern. You can also see two representations of a water molecule in liquid and solid form.

The patterns on the back of the banknotes symbolize the strength of the wind, from weak on the 50-kroner note to stormy on the 1000-kroner note. This is represented by the length of the rectangular shapes.

All Norwegian banknotes have security features such as holographic film strips, watermarks, security threads and strips with changing effects. In addition to the security features, all banknotes are gravure printed on cotton.

Since May 2017, Series VII banknotes have been gradually exchanged for new Series VIII banknotes. The motifs for the new banknotes were selected and determined in October 2014.

Note value size colour motive Issue date
50 crowns 126 × 70 mm green lighthouse Q4 / 2018
100 crowns 133 × 70 mm red Viking ship May 30, 2017
200 crowns 140 × 70 mm blue cod May 30, 2017
500 crowns 147 × 70 mm brown Sailing ship Q4 / 2018
1000 crowns 154 × 70 mm violet waves Q4 / 2019

Coins

There are currently 1, 5, 10 and 20 kroner coins. The 1, 2, 5, 10, 25 and 50 Øre coins are no longer in circulation, so prices are rounded when paying cash in shops. All coins bear national symbols and symbols: a Viking ship , elements of Norwegian stave churches and the Order of Saint Olav . The half-portrait of Harald V , King of Norway is on the 10 and 20 kroner coins . However, there are many special issues in circulation, especially from the 20-krone coin; they show other motives.

Coin value diameter Weight thickness Edge / special features motive emission
1 crown 21 mm 4.35 gr 1.70 mm smooth, perforated coin Monogram Harald V., bird in tendrils 1997
5 crowns 26 mm 7.85 gr 2.00 mm Ornaments, perforated coin Order of Saint Olav, acanthus tendrils 1998
10 crowns 24 mm 6.8 gr 2.00 mm interrupted corrugated Harald V., stave church roof 1995
20 crowns 27.5 mm 9.9 gr 2.20 mm smooth Harald V., bow of a Viking ship 1994

Commemorative coins

The Central Bank Act (Norwegian sentralbankloven ) forms the legal basis for issuing coins.

The Norwegian Central Bank issues two types of commemorative coins. On the one hand, anniversary and commemorative coins in accordance with the Central Bank Act § 16. These are gold or silver coins, which are not regarded as coins in circulation. On the other hand, special issues according to § 13. These are recognized as coins in circulation.

Withdrawn banknotes and coins

Coins and banknotes can be withdrawn from circulation. This is regulated by the central bank. The decision on whether to withdraw funds will be announced in the major daily newspapers and in Norsk Lovtidend , the bulletin published by the Ministry of Justice. After the announcement, the affected banknotes and coins can be used as legal tender for at least one year. Thereafter, the central bank is obliged to redeem the means of payment for another 10 years. The central bank exchanges the notes and coins at their face value. Some means of payment have a higher collector's value. These can be sold through a coin dealer.

Monetary policy in Norway

The government defines an inflation target for monetary policy in Norway. The Bank of Norway is oriented towards low and stable inflation . An annual inflation rate of around 2% was set as the operational target . A stable monetary policy also helps stabilize production and employment . The key interest rate is the central bank's most important monetary policy instrument. It influences domestic money market rates in the short term. The central bank can buy or sell Norwegian kroner to influence the price of the variety . The central bank has not intervened in the foreign exchange market since 1999.

Web links

Individual evidence

  1. ↑ End for the 50 ore (Norwegian) Aftenposten.no, March 18, 2011, accessed on April 17, 2012.
  2. ↑ Development of the 50 ore from a meal to half a plastic bag (Norwegian) Aftenposten.no, April 16, 2012, accessed on April 17, 2012.
  3. ↑ For 50 ore you could buy a school essay by Alf Prøysen (Norwegian) Aftenposten.no, May 1, 2012, accessed on May 1, 2012.
  4. ^ Brief history of Norges Bank . (English, norges-bank.no [accessed June 28, 2018]).
  5. ↑ The Scandinavian Coin Union www.rene-finn.de/pdf/GoldmuenzenSMU.pdf, accessed on: May 16, 2010
  6. ↑ Norwegian Krone ( Memento of the original dated December 31, 2010 in the Internet Archive ) Info: The archive link was inserted automatically and has not yet been checked. Please check the original and archive link according to the instructions and then remove this notice. www.geldfeld.de/whrg/NOK.php @1@ 2Template: Webachiv / IABot / www.geldfeld.de
  7. ^ About the new notes . (English, norges-bank.no [accessed June 28, 2018]).
  8. ^ What to do with old banknotes . (English, norges-bank.no [accessed June 28, 2018]).
  9. ↑ New 100-crown note - motifs . (English, norges-bank.no [accessed June 28, 2018]).
  10. ↑ New 200-crown note - motifs . (English, norges-bank.no [accessed June 28, 2018]).
  11. ↑ Check that the banknote is genuine . (English, norges-bank.no [accessed June 28, 2018]).
  12. ↑ Motifs of the new banknotes www.norges-bank.no, accessed on October 22, 2014
  13. ^ Commemorative coins . (English, norges-bank.no [accessed June 28, 2018]).
  14. ^ Withdrawn banknotes . (English, norges-bank.no [accessed June 28, 2018]).
  15. ^ Monetary policy . (English, norges-bank.no [accessed June 28, 2018]).