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 is probably derived from the Latin word for gold. Altogether there are eleven denominations of the krone, with the smallest being the 50 øre coin (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 AD 825–840, but the earliest systematic minting produced the so-called korsmønter 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.
Danish coinage was generally based on the Carolingian silver standard, with 12 penning to a skilling and 20 skilling to a pound; later on, 16 skilling to a mark. The metal content of minted coins was subject to debasement over the centuries, an easy way to generate income for the monarch and/or the state. Taxes were sometimes imposed via the coinage, such as by the compulsory substitution of coins handed in by new coins handed out with a lower silver content. 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 issued in paper money.
Several different currency systems have been used by Denmark from the 16th to 19th centuries. The krone (lit. "crown") has existed as early as 1513 as a unit of account worth 8 marks. In more general use until 1813, however, was a krone or schlecht daler worth 2⁄3 rigsdaler, 4 marks, or 64 skilling.
The modern-day 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 2,480 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
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Denmark
Denmark (Danmark, ) is a Nordic country in Northern Europe. It is the most populous and politically central constituent of the Kingdom of Denmark, a constitutionally unitary state that includes the autonomous territories of the Faroe Islands and Greenland in the North Atlantic Ocean. Metropolitan Denmark is the southernmost of the Scandinavian countries, lying south-west of Sweden, south of Norway, and north of Germany.
As of 2013, the Kingdom of Denmark, including the Faroe Islands and Greenland, has a total of 1,419 islands above 100 m2; 443 of which have been named and of which 78 are inhabited. Spanning a total area of 42943 km2, metropolitan Denmark consists of the northern part of the Jutland peninsula and an archipelago of 406 islands. Of these, the most populated island is Zealand, on which the capital Copenhagen is situated, followed by Funen, the North Jutlandic Island, and Amager. Denmark's geography is characterised by flat, arable land, sandy coasts, low elevation, and a temperate climate. As of 2022, it had a population of 5.928 million (1 October 2022), of which 800,000 live in the capital and largest city, Copenhagen. Denmark exercises hegemonic influence in the Danish Realm, devolving powers to handle internal affairs. Home rule was established in the Faroe Islands in 1948 and in Greenland in 1979; the latter obtained further autonomy in 2009. -
Faroe Island
The Faroe Islands, or simply the Faroes (Føroyar ; Færøerne ), are a North Atlantic island group and an autonomous territory of the Kingdom of Denmark.
They are located 200 mi north-northwest of the United Kingdom, and about halfway between Norway (360 mi away) and Iceland (270 mi away). The islands form part of the Kingdom of Denmark, along with mainland Denmark and Greenland. The islands have a total area of about 540 sqmi with a population of 54,000 as of June 2022. -
Greenland
Greenland (Kalaallit Nunaat, ; Grønland, ) is an island country in North America that is part of the Kingdom of Denmark. It lies between the Arctic and Atlantic oceans, east of the Canadian Arctic Archipelago. Greenland is the world's largest island. It is one of three countries that form the Kingdom of Denmark, the others being Denmark and the Faroe Islands; the citizens of all these countries are citizens of Denmark and of the European Union. The capital of Greenland is Nuuk.
Though a part of the continent of North America, Greenland has been politically and culturally associated with Europe (specifically Norway and Denmark, the colonial powers) for more than a millennium, beginning in 986. Greenland has been inhabited at intervals over at least the last 4,500 years by Arctic peoples whose forebears migrated there from what is now Canada. Norsemen settled the uninhabited southern part of Greenland beginning in the 10th century, having previously settled Iceland. Inuit arrived in the 13th century. Though under continuous influence of Norway and Norwegians, Greenland was not formally under the Norwegian crown until 1261. The Norse colonies disappeared in the late 15th century, after Norway was hit by the Black Death and entered a severe decline.