The official currency of Denmark is the Danish Krone, also commonly known by its symbol, DKK. This currency is not only used in Denmark but also in two of its territories, Greenland, and the Faroe Islands.
Its name “krone” translates to “crown” in English, a testament to the nation’s historical monarchy. In fact, the design of the coins often features the monarch’s crown or portrait as a symbol of royal authority.
The DKK is Pegged to the Euro
The Danish Krone is pegged closely to the Euro under the European Union’s Exchange Rate Mechanism II (ERM II). The Danish Central Bank, Danmarks Nationalbank, ensures that the krone trades within a narrow band of +/- 2.25% of the central rate of 7.46 kroner to the Euro.
This close relationship to the Euro was originally established with the German mark to safeguard the krone’s value, and the relationship was maintained when the Euro was introduced.
Euro Referendum
In the year 2000, Denmark held a referendum on whether to replace the Danish Krone with the Euro, as many other European Union members had done. However, the majority of Danish citizens voted against the proposal, favoring the retention of the Danish Krone. The conservative-liberal parties, who were in favor of the Euro, proposed holding a new referendum in 2004. However, due to insufficient public support for the Euro evident from opinion polls, the proposed referendum was eventually abandoned.
As of today, the Danish Krone remains the legal tender in Denmark, Greenland, and the Faroe Islands, holding a significant place in their respective economies and cultural identities.
Coins and Banknotes
A single krone is divisible into 100 øre, although the physical øre coins were phased out in 2008. Today, the only denominations in coins you will encounter are 50 øre, 1 krone, 2 kroner, 5 kroner, 10 kroner, and 20 kroner. Each coin carries a unique design that usually includes the royal crown or monarch’s portrait, the date of minting, and the denomination.
The Danish Krone also has a range of banknotes, which come in denominations of 50, 100, 200, 500, and 1000 kroner. These banknotes feature a vibrant design often incorporating elements of Danish culture, history, and landscapes.
Coins:
- 50 øre
- 1 krone
- 2 kroner
- 5 kroner
- 10 kroner
- 20 kroner
Banknotes:
- 50 kroner
- 100 kroner
- 200 kroner
- 500 kroner
- 1000 kroner