Danish krone. History of occurrence

The emergence of the currency of any country was preceded by a variety of historical events. The Danish krone is also evidence of important phenomena in the life of the monarchy. The formation of this money mark began in 1873, when on the territory of the kingdom there was economic instability, apathy and devastation. The government of the country did its utmost to improve the situation. To exit from the critical situation, a local currency, the Danish krone, was put in circulation.

In parallel with this event, a Scandinavian monetary (monetary) union was signed between the country and Sweden. The second title of this pact is "Currency Reform". The goal pursued by this union is simple and understandable - to stabilize the monetary units of these countries in relation to gold. For the first time the idea of signing such an agreement appeared in Denmark. It was there that students began to advocate for the expansion of the national market through its unification with the markets of neighboring countries.

Since that time Sweden has changed the name of its monetary unit and, like the Danish krone, it began to contain in its name a derivative part from the word "crown" - the crown.

After a while, in 1876, this union was joined by Norway, which at that time was in close economic relations with Sweden. Like the two founding countries of this pact, this kingdom changed the name of its monetary unit to a name similar to that of its neighbors' means of payment. Before that, the currency of Denmark was called the riksdaler, whose denomination was equal to 96 skilling, and in Norway there was a spesedaler in circulation.

It is worth noting that the positive moment of the Scandinavian monetary union formed was the opportunity to freely use any of the monetary units in each of the three countries. The beginning of the First World War marked a gap in the guarantees of this agreement. At the same time, Sweden, Denmark and Norway switched to the use of paper payment means, and the reinforcement with gold was minimized, which adversely affected the exchange rate of each currency. Other points of the agreement, once signed, also lost force. So, if before that time Swedish, Norwegian and Danish crowns were issued in the form of gold coins, then in the early 20s of the 20th century they switched to the production of iron money. Those, in turn, were replaced by copper-nickel kruglyashami. At the same time, since 1924, a single national currency unit - the Swedish krone - has been established in Sweden, and the currency signs of the allied countries have lost their force and have ceased to be considered a legal tender.

To date, the Danish krone is the only national currency of the country, one unit of which contains 100 eras. Moreover, what is noteworthy, the Faroe Islands, which are part of the country, have their own currency, the conversion of which occurs at a rate of 1: 1 relative to the country's main monetary unit. Earlier, before the appearance of the euro, the Danish krone was tied to the German mark.

The economy of the country has in circulation coins and bills. The smallest paper sign is 100 kroons, there are also denominations of 200, 500 and 1000 denominations. Coins, whose denominations begin with the 50th era, and end with 20 kroons, can also be found in the purses of the Danes.