Swedish Krona

• Country: Sweden
• Currency: Krona
• Alias: Swedish krona
• ISO 4217 CODES: SEK/752
• Symbol: kr

The krona is the national currency of the Kingdom of Sweden, a country of approximately 9 million residents located in the Scandinavia region of Northern Europe. The Swedish word krona translates as “crown” in English, and shares a common ancestry with Norway’s krone and Denmark’s krone. The Sveriges Riksbank serves as the country’s central bank, regulating all monetary policy. Sweden became a member of the European Union in 1995, but has opted to retain the krona as its currency rather than converting to the euro, and has abstained from participating in the Exchange Rate Mechanism II that must precede any such conversion.

Background of the Swedish Krona

The Scandinavian Monetary Union – enacted in 1873 – allowed for fixed rates of exchange between the currencies used by Sweden, Norway and Denmark based on a gold standard. When the Union was dissolved at the outbreak of World War I in 1914, the various nations rescinded their fixed rates of exchange. Sweden later pegged the krona to the European Currency Unit – a basket of currencies that served as the precursor to the modern euro.

Sweden officially maintained a stance of neutrality during World Wars I and II. The country’s industrial capacity was largely unaffected by the widespread destruction of World War II, and in the post-war years, Sweden became a major source of building materials for the rest of Europe. Within two decades, Sweden has also become one of the industrial giants of northern Europe. Companies such as Volvo (now a unit of Ford Motor Company), SAAB (now a unit of General Motors), Ikea, Tetra Pak, and Ericsson have all contributed significantly to Sweden’s exports

Sweden suffered a moderate economic crisis from 1991-93, necessitating changes in its monetary policies. For decades, the krona had consistently operated on a fixed exchange rate. On November 19, 1992, the fixed rate of exchange was abandoned, and the krona began a managed float regime. It’s value dropped almost immediately by about 20%.

After initially rejecting membership in the European Union in 1972, Sweden became a member of the EU on January 1, 1995. At present, Sweden has no plans to convert its national currency to the euro, and has resisted entering the Exchange Rate Mechanism II.

The krona is divided into 100 öre. Denominations for coins are 50 öre, 1 krona, 5 kronor, and 10 kronor. Denominations for banknotes are 20 kronor, 50 kronor, 100 kronor, 500 kronor and 1,000 kronor.