Estonian kroon

From Wikipedia, the free encyclopedia
Jump to: navigation, search
Estonian kroon
Eesti kroon  (Estonian)
EST-coins-overview.jpg
Coins
ISO 4217 code EEK (num. 233)
Central bank Bank of Estonia
 Website www.bankofestonia.info
User(s) None, previously:
 Estonia
Inflation 2.8%
 Source European Central Bank, May 2010
 Method HICP
ERM
 Since 28 June 2004
 Fixed rate since 31 December 1998
 Replaced by €, non cash 1 January 2011
 Replaced by €, cash 1 January 2011
= 15.6466 krooni
 Band did not fluctuate[1]
Subunit
 1/100 sent
Nickname paper, The family names of the persons on notes: 100 krooni – Koidula, 500 krooni – Jakobson etc.
Plural krooni (Estonian partitive sg.)
sent senti (Estonian partitive sg.)
Coins
 Freq. used 10, 20, 50 senti, 1 kroon
 Rarely used 5 senti, 5 krooni
Banknotes
 Freq. used 1, 2, 5, 10, 25, 50, 100, 500 krooni
This infobox shows the latest status before this currency was rendered obsolete.

The kroon (sign: kr; code: EEK) was the official currency of Estonia for two periods in history: 1928–1940 and 1992–2011. Between 1 January and 14 January 2011, the kroon circulated together with the euro, after which the euro became the sole legal tender in Estonia.[2][3] The kroon was subdivided into 100 cents (senti; singular sent). The word kroon (Estonian pronunciation: [ˈkroːn], crown) is related to that of the other Nordic currencies (such as the Swedish krona and the Danish and Norwegian krone) and derived from the Latin word corona ("crown"). The kroon succeeded the mark in 1928 and was in use until the Soviet invasion in 1940 and Estonia's subsequent incorporation into the Soviet Union when it was replaced by the Soviet ruble. After Estonia regained its independence, the kroon was reintroduced in 1992.

First kroon, 1928–1940[edit]

History[edit]

The kroon became the currency of Estonia on 1 January 1928 after having been a unit of account since 1924.[4] It replaced the mark at a rate of 100 mark = 1 kroon. The kroon was subdivided into 100 senti.

In 1924, the kroon was pegged to the Swedish krona at par, with a gold standard of 2480 kroon = 1 kilogram of pure gold. The standard received real coverage with the reserves backing the kroon. The issue of treasury notes and exchange notes was terminated. In order to secure the credibility of the kroon, the Bank of Estonia exchanged kroon for foreign currency. All these measures restored confidence in the domestic banking and monetary sector, contributing to the economic reinvigoration of the country and to the improvement of the reputation of the Estonian state in the international arena.

During the Great Depression in 1933, the kroon went off the gold standard, devalued 35% and obtained a currency peg with the Great Britain Pound (GBP) at 1 GBP = 18.35 kroon.[5] The Estonian kroon kept this peg and circulated until the Soviet occupation of 1940. The kroon was exchanged for the Soviet ruble at a rate of 1 ruble = 0.8 kroon.

Banknotes and coins[edit]

In 1928, the first coins of this currency were issued, nickel-bronze 25 senti pieces. These were followed by bronze 1 sent in 1929, silver 2 krooni in 1930, bronze 5 senti and nickel-bronze 10 senti in 1931, silver 1 kroon in 1933, bronze 2 senti and aluminium-bronze 1 kroon in 1934, nickel-bronze 20 senti in 1935, nickel-bronze 50 senti in 1936.

On 25 July 1940, 4 days after founding of Estonian SSR, the last Estonian pre-WW II coin, new 1 sent (date 1939) was issued.

In 1927, before the kroon was officially introduced, 100 marka banknotes circulated with an "ÜKS KROON" (1 kroon) overprint. Eesti Pank introduced 10 krooni notes in 1928, followed by 5 and 50 krooni in 1929, 20 krooni in 1932 and 100 krooni in 1935.

Second kroon, 1992–2010[edit]

History[edit]

The kroon was reintroduced as Estonia's currency on 20 June 1992, replacing the Soviet ruble at a rate of 1 kroon = 10 rubles. (Each person was able to change a maximum of 1500 rubles to 150 kroons.) Initially, the Estonian kroon was pegged to the Deutsche Mark at a rate of 8 krooni = 1 Deutsche Mark.[6] After the introduction of the euro the fixed exchange rate of 1.95583 DEM to EUR led to an exchange rate of 15.64664 krooni to the euro. On 27 June 2004, as Estonia joined the ERM II-system, the central parity of the Estonian kroon was revalued (by less than 0.001%) to 15.6466 krooni per euro.[7] On 1 January 2011 the euro replaced the kroon as the official currency of Estonia. The kroon circulated alongside the euro until 15 January 2011 at which point it ceased to be legal tender.[8] However, the Eesti Pank will indefinitely exchange kroon banknotes and coins in any amount into euro.

Banknotes[edit]

In 1992, banknotes were introduced in denominations of 1, 2, 5, 10, 25, 100 and 500 krooni. Some of the 5, 10, 25, 100 and 500 krooni notes were dated 1991. In 1994, a 50 krooni note was introduced. Unlike others, the 1 kroon and 50 krooni notes were issued only once.

Notes in circulation before being replaced by the euro:

Current Series
Image Value (EEK) Value (€) Main Colour Description
Obverse Reverse Obverse Reverse
EEK-1kroon-front.jpg EEK-1kroon-rear.jpg 1 kroon €0.06 Orange/Brown Kristjan Raud Toompea Castle
EEK-2krooni-front.jpg EEK-2krooni-rear.jpg 2 krooni €0.13 Grayish blue Karl Ernst von Baer University of Tartu
EEK-5krooni-front.jpg EEK-5krooni-rear.jpg 5 krooni €0.32 Orange Paul Keres Narva castle & Ivangorod fortress
EEK-10krooni-front.jpg EEK-10krooni-rear.jpg 10 krooni €0.64 Pink Jakob Hurt Tamme-Lauri oak tree
EEK-25krooni-front.jpg EEK-25krooni-rear.jpg 25 krooni €1.60 Green Anton Hansen Tammsaare Vargamäe village
EEK-50krooni-front.jpg EEK-50krooni-rear.jpg 50 krooni €3.20 Dark green Rudolf Tobias Estonia Theatre
EEK-100krooni-front.jpg EEK-100krooni-rear.jpg 100 krooni €6.40 Light blue Lydia Koidula Baltic Klint
EEK-500krooni-front.jpg EEK-500krooni-rear.jpg 500 krooni €31.96 Purple Carl Robert Jakobson Barn swallow

Coins[edit]

50 senti 2004
Reverse Obverse

In 1992, coins were introduced (some dated 1991) in denominations of 5, 10, 20 & 50 senti, as well as 1 kroon. The 1 kroon was struck in cupronickel, the others in aluminum-bronze. However, in 1997, nickel-plated steel 20 senti were introduced, followed by aluminum-bronze 1 kroon in 1998. 5 senti coins were not issued after 1994 but were still legal tender. The cupronickel 1 kroon coins from 1992, 1993 & 1995 were demonetized on 31 May 1998.[9] The 5 krooni coins were commemorative pieces and were rarely seen in circulation.

Coins in circulation before being replaced by the euro:[10]

  • 5 senti (1991, 1992, 1995)
  • 10 senti (1991, 1992, 1994, 1996, 1997, 1998, 2002, 2006, 2008)
  • 20 senti (1992, 1996, 1997, 1999, 2003, 2004, 2006, 2008)
  • 50 senti (1992, 2004, 2006, 2007)
  • 1 kroon (1992, 1993, 1995, 1998, 2000, 2001, 2003, 2006, 2008)
  • 5 krooni (1993, 1994).
Image Nominal value Technical parameters
Diameter Weight Edge Composition
5senti 1995.png 5 senti 15.95 mm 1.29 g plain copper 93%, aluminum 5%, nickel 2%
10senti 1997.png 10 senti 17.20 mm 1.87 g
20senti 1992.png 20 senti 18.95 mm 2.27 g
20senti 1997.png 20 senti 18.95 mm 2.00 g nickeled steel
50senti 1992.png 50 senti 19.50 mm 3 g copper 93%, aluminum 5%, nickel 2%
1kroon 1998.png 1 kroon 23.25 mm 5 g jagged copper 89%, aluminum 5%, zinc 5% Sn 1%
5kroon 1994.png 5 krooni 26.20 mm 7.1 g

See also[edit]

References[edit]

  1. ^ General principles of the Estonian monetary system, Bank of Estonia
  2. ^ "Stages of the cash changeover". European Central Bank. Retrieved 2010-05-12. 
  3. ^ Ministers offer Estonia entry to eurozone January 1 France24, 8 june 2010
  4. ^ "Estonian Coinage". European Commission. Retrieved 2010-05-13. 
  5. ^ Bank of Estonia. "Some facts from the history of Eesti Pank and Estonian finance". Retrieved 13 May 2010. 
  6. ^ Bank of Estonia. "History – Eesti Pank 1919–1992". Retrieved 2006-12-30. 
  7. ^ "Estonian kroon included in the Exchange Rate Mechanism II (ERM II)" (Press release). ECB. 27 June 2004. Retrieved 2009-11-04. 
  8. ^ Stages of the cash changeover ECB: Estonia (2011)
  9. ^ Coins in circulation Bank of Estonia
  10. ^ "Estonian coins". Bank of Estonia. Retrieved 2009-11-04. 

External links[edit]

Preceded by:
Estonian mark
Reason: independence
Ratio: at par
Currency of Estonian kroon
1928 – 1940
Succeeded by:
Soviet ruble
Reason: Estonian SSR
Ratio: ?
Preceded by:
Soviet ruble
Reason: Estonian SSR
Ratio: at par
Currency of Estonian kroon
1992 – 2010
Succeeded by:
Euro
Reason: entry into Eurozone
Ratio: 1 EUR = 15.6466 EEK