Norwegian Krone
- Country: Norway
- Currency: Krone
- Alias: Norwegian krone
- ISO 4217 CODES: NOK/578
- Symbol: NKr
The Norwegian krone is the official currency of the Kingdom of Norway, a nation of approximately 4.6 million people situated on the Scandinavian peninsula. Krone translates in English as “crown,” and derivations of the name also used by Sweden and Denmark for their respective currencies. The Norwegiean krone was first introduced in 1875 as part of Norway’s participation in the Scandinavian Monetary Union, a treaty that was disbanded in 1914. Norway has opted not to join the European Union, and instead, prefers to keep the krone as a free-floating currency administered by the Central Bank of Norway.
Background of the Norwegian Krone
Norway was first settled in the 9th century by Europeans that migrated north from the central portion of the continent. Between the Middle Ages and 1905, Norway had always been under the control of either Denmark or Sweden. The country declared its formal independence in 1905.
Norway maintained a neutral stance during World War I, but was invaded by Germany during World War II and developed a strong resistance movement. Following the surrender of Germany in 1945, Norway joined the United Nations and the North Atlantic Treaty Organization.
Oil was discovered in the North Sea in 1968, and natural gas reserves were discovered soon thereafter, helping to bolster the economy while reducing Norway’s dependence on fishing, farming and shipping for revenue.
Norway has opted not to join the European Union, most recently affirmed by a 1994 national vote. As such, they don’t use the euro. However, Norway is a member of the European Free Trade Agreement (EFTA), along with other non-EU members Iceland, Switzerland and Liechtenstein.
The krone is divided into 100 øre. Denominations for coins are 50 øre, 1 krone, 5 kroner, 10 kroner and 20 kroner. Denominations for banknotes are 50 kroner, 100 kroner, 200 kroner, 500 kroner and 1,000 kroner.
