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Danish krone users

Danish Krone is the official currency of Denmark (officially the kingdom of Denmark), Greenland and Faroe Islands. Both Greenland and Faroe Islands are autonomous countries within the Kingdom of Denmark.

Denmark is a Nordic country. The Nordic Europe countries consist of the three Scandinavian countries including the kingdoms of Norway, Sweden and Denmark, two republics of Iceland and Finland, and their associated territories of the Faroe Islands (Denmark), Greenland (Denmark) and Aland (Finland). Among them, Sweden, Finland and Denmark are the member states of the European Union (EU) and only Finland has adopted the euro.

Denmark obtained a Eurozone participation Opt-out, hence Denmark is not obliged to replace the Danish krone to the euro. The Danish krone is part of the ERM-II mechanism, so its exchange rate is pegged with the euro within the fluctuation band of ±15% (de facto 0.5%).

Greenland has been autonomous part of Denmark since 1979. It is the world’s biggest island, locates at the continent of Northern America but has been associated with Europe politically and culturally for centuries. Danish Krone has been the official currency of Greenland since 1875. Greenland has planned to produce a distinct Greenlandic version of the Danish krone. Similar relationship as between Faroese krona and the Danish krone, Greenlandic krone will also use the same ISO 1427 code as the Danish krone, which is DKK. Greenland withdrew from the European Economic Community (EEC) and the European Union (EU) in 1985.

The Faroe Islands has been autonomous part of Denmark since 1948, however it is not part of the European Union (EU). The Faroe Islands use Faroese krona as their official currency while Danish krone is widely accepted. Faroese krona is officially the same currency as Danish krone. It is a version of the Danish krone and pegged with Danish krone at par. Faroese krona are printed with Faroese motifs but shares the same Danish krone ISO 4217 code of “DKK”, and uses the same sizes, standards and the elements of security features of Danish krone coins and banknotes. Faroese krona is issued by the Danish National Bank and can be exchanged with Danish kroner free of charge. However, only very few Danish stores will accept Faroese notes. As a result, the Faroe Islands people are often advised to exchange their Faroese krona cash to Danish krone if they are travelling to Denmark.

Danish krone history

Denmark,Sweden and Norway used to be the members of Scandinavian Monetary Union which was formed in 1873 and lasted until World War I. The union provided a free circulation of the monetary. The three legacy currencies were replaced by an equal valued krone/krona at the rate of 1 krone/krona = 1 Swedish riksdaler = ½ Danish rigsdaler = ¼ Norwegian speciedaler.

Denmark became a European Union (EU) member since 1973 while both the Faroe Islands and Greenland decided to not join the EU.

Denmark is one of the eight earliest members of European Economic Community (EEC) and established European Monetary System (EMS) along with other seven members in 1979. The Danish krone is part of the European Exchange Rate (ERM-II) mechanism, so its rate is pegged to the euro.  However, Denmark has not introduced the euro since Danish people rejected the euro by referendum in 2000 and 2002.

Danish krone coins and banknotes

One Danish krone is subdivided into 100 øre, Due to inflation, the 50-øre are the smallest denomination now in circulation.

The designs of Danish krone coins are easily to be distinguishes from each other. There are six denominations of the krone coins and are grouped with three sequences. 50_ore is one sequence, while the 1-, 2- and 5-krone coins are the second sequence. The highest denominations coins of 10- and 20- krone are the third sequence. The three sequences each has its own metal colour, size, weight and rim, and even the kr1, kr2, kr5 coins have a hole in middle. Take the example of color difference, from smallest to highest denominations, three sequences coins are bronze, silver and golden.

Danish krone and the currency of crown

In English, Danish krone is sometimes referred to as the Danish crown. The crown is a currency used in six European countries and their dependencies and dominions and crown names various because of these countries’ official language.

Crown currencies currently in circulation
Countries Currency name Code Subunit Introduced since
Czech Republic Czech koruna CZK 1/100 = Haléru 1993
(and Greenland, Faroe Islands)
Danish krone DKK 1/100 = Øre 1875
Iceland Icelandic krona ISK 1/100 = Eyrir (obsolete) 1874
Norway and 4 dependencies Norwegian krone NOK 1/100 = øre 1873
Sweden Swedish krona SEK 1/100 = ören (discontinued) 1873