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 banknote began in 1873, when economic instability, apathy and devastation were observed in the kingdom. The government of the country did its best to improve the situation. To overcome the critical situation, the local currency, the Danish krone, was put into circulation.
In parallel with this event, the Scandinavian monetary (monetary) union was signed between this country and Sweden. The second name of this pact is "Currency Reform." The goal pursued by this union is simple and understandable - to stabilize the monetary units of these countries against gold. The idea of signing such an agreement first appeared in Denmark. It was there that students began to advocate for the expansion of the national market through its association with the markets of neighboring countries.
Since that time, Sweden changed the name of its currency and, like the Danish krone, it began to contain in its name a derivative of the word “crown” - the krone.
After some time, in 1876, Norway joined this union, 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 currency to a name similar to the name of the payment instrument of its neighbors. Prior to this, the currency of Denmark was called the Riksdaler, the face value of which was 96 skills, and in Norway, the special currency was in circulation.
It is worth noting that the positive aspect of the formed Scandinavian monetary union was the ability to freely use any of the monetary units in each of the three countries. The outbreak 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 means of payment, and gold reinforcement was minimized, which negatively affected the exchange rate of each currency. Other clauses of the once-signed agreement have also expired. So, if until 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 round circles. At the same time, since 1924, a single national monetary unit, the Swedish krona, was established on the territory of Sweden, and the currency signs of the allied countries lost their strength and ceased to be considered legal tender.
To date, the Danish krone is the only national currency of the country, one unit of which contains 100 era. Moreover, it is noteworthy that the Faroe Islands, which are part of the country, have their own currency, the conversion of which occurs at the rate of 1: 1 in relation to the main monetary unit of the country. Earlier, before the euro, the Danish krone was tied to the German mark.
The country's economy has in circulation coins and banknotes. The smallest paper sign is 100 kroons, there are also banknotes in denominations of 200, 500 and 1000. Coins, the denomination of which begins with the 50th era, and ends with 20 crowns, can also be found in Danes' wallets.