Swedish krona

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"Swedish crown" redirects here. For the Swedish monarchy, see Monarchy of Sweden.
Swedish krona
svensk krona (Swedish)
Collage SEK.png
Swedish bank notes
ISO 4217 code SEK
Central bank Sveriges Riksbank
 Website www.riksbanken.se
User(s)  Sweden
Inflation 1.0 % (target 2.0 ± 1)[1]
 Source December 2012[2]
 Method CPI
Subunit
 1/100 öre
Symbol kr
Nickname spänn, bagare/bagis, pix, daler riksdaler
Plural kronor
Coins
 Freq. used 1 kr, 5 kr, 10 kr
Banknotes
 Freq. used 20 kr, 50 kr, 100 kr, 500 kr
 Rarely used 1000 kr
Printer Tumba Bruk
 Website www.crane.se

The krona (plural: kronor; sign: kr; code: SEK) has been the currency of Sweden since 1873. Both the ISO code "SEK" and currency sign "kr" are in common use; the former precedes or follows the value, the latter usually follows it, but especially in the past, it sometimes preceded the value. In English, the currency is sometimes referred to as the Swedish crown, since krona literally means crown in Swedish. The Swedish krona was the 11th most traded currency in the world by value in April 2013.[3]

One krona is subdivided into 100 öre (singular and plural; when referring to the currency unit itself, however, the plural definite form is ören). However, all öre coins have been discontinued as of 30 September 2010.[4] Goods can still be priced in öre, but all sums are rounded to the nearest krona when paying with cash.

History[edit]

The introduction of the krona, which replaced at par the riksdaler, was a result of the Scandinavian Monetary Union, which came into effect in 1873 and lasted until World War I. The parties to the union were the Scandinavian countries, where the name was krona in Sweden and krone in Denmark and Norway, which in English literally means "crown". The three currencies were on the gold standard, with the krona/krone defined as 12480 of a kilogram of pure gold.

After dissolution of the monetary union, Sweden, Denmark, and Norway all decided to keep the names of their respective and now separate currencies.

Coins[edit]

Contemporary[edit]

Currently circulating Swedish krona coins [5][6][7]
Value Diameter Thickness Weight Composition Current design issued since Older coins legal tender?
1 krona 25 mm 1.88 mm 7.0 g Cupronickel 2001 All mintages (since 1875)
5 kronor 28.5 mm 2 mm 9.5 g Outer layer (46.5%): Cupronickel
Inner layer (53.5%): Nickel
1976 Since 1954
10 kronor 20.5 mm 2.9 mm 6.6 g Nordic gold 1991 No
The cupronickel alloy used in Swedish mintage is 75% Cu, 25% Ni.
Nordic Gold is 89% Cu, 5% Al, 5% Zn, 1% Sn.

History[edit]

Two golden 20 kr coins from the Scandinavian Monetary Union, which was based on a gold standard. The coin to the left is Swedish and the right one is Danish.

Between 1873 and 1876, coins in denominations of 1, 2, 5, 10, 25, and 50 öre and 1, 2, 10, and 20 kronor were introduced. The 1, 2 and 5 öre were in bronze, the 10, 25, 50 öre and 1 krona and 2 kronor were in silver, and the 10 and 20 kronor were in gold. Gold 5 kronor coins were added in 1881.

In 1902, production of gold coins ceased, and was briefly restarted in 1920 and 1925 before ceasing entirely. Due to metal shortages during World War I, iron replaced bronze between 1917 and 1919. Nickel-bronze replaced silver in the 10, 25 and 50 öre in 1920, with silver returning in 1927.

Metal shortages due to World War II again led to changes in the Swedish coinage. Between 1940 and 1947, the nickel-bronze 10, 25 and 50 öre were again issued. In 1942, iron again replaced bronze (until 1952) and the silver content of the other coins was reduced. In 1962, cupronickel replaced silver in the 10 öre, 25 öre and 50 öre coins.

In 1968, the 2 kronor switched to cupronickel and the 1 krona switched to cupronickel-clad copper (it was replaced entirely by cupronickel in 1982). Nonetheless, all previous mintages of 1 and 2 kronor coins are still legal tender, since 1875 and 1876 respectively (though 2 kronor coins are extremely rarely seen in circulation as they have not been issued since 1971.[8] The 2 kr coins contained 40% silver until 1966, which meant they had been for several years worth much more than 2 kr, so most have been bought and melted down by arbitrageurs, and the rest are kept by collectors). A new design of 2 kronor coins will be issued in 2016.

In 1954, 1955 and 1971, 5 kronor silver coins were produced, with designs similar to contemporary 1 krona and 2 kronor coins. In 1972, a new, smaller 5 kronor coin was introduced, struck in cupronickel-clad nickel. The current design has been produced since 1976. 5 kronor coins minted since 1954 are legal tender but tend to be kept by collectors for their silver content.

In 1971, the 1 and 2 öre, as well as the 2 kronor coins ceased production. The size of the 5 öre coin was reduced in 1972.[9] In 1984, production of the 5 and 25 öre coins came to an end, followed by that of the 10 öre in 1991.

In 1991, aluminium-brass ("Nordic gold") 10 kronor coins were introduced. Previous 10 kronor coins are not legal tender.

Also in 1991, bronze-coloured 50 öre coins were introduced.

Jubilee and commemorative coins have been minted and those since 1897 or later are also legal tender.[10]

The royal motto of the monarch is also inscribed on many of the coins. The 5 kronor coin was designed in 1974, at a time when there were political efforts to abandon the monarchy, when there was a new young inexperienced king. The monarchy remained, but the 5 kronor was not given a portrait. Coins minted before 1974 have the same size, but contain the portrait of King Gustav VI Adolf and his royal motto.

Recent changes[edit]

On December 18, 2008, the Riksbank announced a proposal to phase out the 50 öre, the final öre coin, by 2010. The öre would still remain a subdivision unit for electronic payments.[11] The reason could include low purchasing power, higher production and distribution cost than the value and the coins cannot be used in most parking machines and vending machines.[12] On March 25, 2009, the Riksdag formally decided to enact the law to repeal 50 öre coins as legal tender. Under that law, the final date payments could be made with 50 öre coins was September 30, 2010. Remaining 50 öre coins could be exchanged at banks until the end of March 2011.

Planned coins[edit]

On 11 September 2012, the Riksbank announced a new series of coins to replace the 1 and 5 kronor coins which will be arriving in 2016.[13] Under the theme of "Sol, vind och vatten" (English: "Sun, wind and water"), this would also include the reintroduction of the 2 kronor coin along the other coins. The current 10 kronor coin would remain the same. The new coins would also have a new portrait of the king in the design. One of the reasons for a new series of coins, is to end the use of nickel in the coins.

The new Swedish krona coins
Value Diameter Thickness Weight Composition
1 krona 19.5 mm 1.79 mm 3.6 g Copper-plated steel
2 kronor 22.5 mm 1.79 mm 4.8 g Copper-plated steel
5 kronor 23.75 mm 1.95 mm 6.1 g Nordic gold
Nordic Gold is 89% Cu, 5% Al, 5% Zn, 1% Sn.

Banknotes[edit]

Contemporary notes[edit]

Current Swedish banknote series[14]
Image Value Dimensions Main Color Description
Obverse Reverse Obverse Reverse
Banknote sweden 20 krona reverse.jpg 20 kronor 120 × 67 mm Purple Selma Lagerlöf Nils Holgersson flying over Scania
Swedish 50 kronor banknote front.jpg
[2]
50 kronor 120 × 77 mm Green Jenny Lind Key harp and its tonal range
100 kronor 140 × 72 mm Blue Carl von Linné Bee pollinating a flower
[3]
Polhem on the swedish 500 kronor note.jpg 500 kronor 150 × 82 mm Red Charles XI Christopher Polhem
1000 kronor 160 x 82 mm Grey Gustav Vasa A harvest picture from Olaus Magnus' Description
These images are to scale at 0.7 pixels per millimeter.

History[edit]

In 1874, notes were introduced by the Riksbank in denominations of 1 krona and 5, 10, 50, 100 and 1000 kronor. The 1 krona was only initially issued for two years, although it reappeared between 1914 and 1920. In 1939 and 1958, 10,000 kronor notes were issued.

The 5 kronor bill was discontinued in 1981, although a coin had been issued since 1972. In 1985, the 500 kronor bill was introduced. With the introduction of a 10 kronor coin in 1991, production of 10 kronor bills ceased and a 20 kronor bill was introduced. Production of 50 kronor bills was suspended that year but resumed in 1996.

In 2006, the Riksbank introduced a new 1000 kronor note[15] which is the first bill to contain the "Motion" security feature developed by Crane, then called Tumba Bruk. Crane AB, located in Tumba, Sweden, prints all of the kronor banknotes.

Planned banknotes[edit]

On 6 April 2011, the Riksbank announced the names of the persons whose portraits would decorate the new series of banknotes that would be introduced in 2015. This would also include a new 200 kronor banknote. These are:

On 24 April 2012 the Riksbank has announced the base for the new designs of the banknotes, based on Göran Österlund's entry titled Cultural Journey.[16]

Planned Swedish banknotes (Cultural Journey series)[17]
Image Value Dimensions[18] Main Color Description
Obverse Reverse Obverse Reverse
20 kronor 120 × 66 mm Purple Astrid Lindgren Småland
50 kronor 126 × 66 mm Orange Evert Taube Bohuslän
100 kronor 133 × 66 mm Blue Greta Garbo Stockholm
200 kronor 140 × 66 mm Green Ingmar Bergman Gotland
500 kronor 147 × 66 mm Red Birgit Nilsson Skåne
1000 kronor 154 × 66 mm Brown Dag Hammarskjöld Lappland
These images are to scale at 0.7 pixels per millimeter.

Exchange rate[edit]

Most traded currencies by value
Currency distribution of global foreign exchange market turnover[19][20]
Rank Currency ISO 4217 code
(Symbol)
 % daily share
(April 2013)
1
United States dollar
USD ($)
87%
2
Euro
EUR (€)
33%
3
Japanese yen
JPY (¥)
23%
4
Pound sterling
GBP (£)
12%
5
Australian dollar
AUD ($)
8.6%
6
Swiss franc
CHF (Fr)
5.2%
7
Canadian dollar
CAD ($)
4.6%
8
Mexican peso
MXN ($)
2.5%
9
Chinese yuan
CNY (¥)
2.2%
10
New Zealand dollar
NZD ($)
2.0%
11
Swedish krona
SEK (kr)
1.8%
12
Russian ruble
RUB (₽)
1.6%
13
Hong Kong dollar
HKD ($)
1.4%
14
Singapore dollar
SGD ($)
1.4%
15
Turkish lira
TRY (₺)
1.3%
Other 12%
Total[21] 200%
Historic exchange rate against the Euro

The exchange rate of the Swedish krona against other currencies has historically been dependent on the monetary policy pursued by Sweden at the time. Since November 1992, a managed float regimen has been upheld.[22] The exchange rate has been relatively stable against the euro since its introduction 2002 (about 9–9.5 SEK per EUR), but from the second half 2008, the value of the krona has declined by around 20%, and had been oscillating between 10.4–11 SEK per EUR into the first half of 2009.[citation needed] The primary reason for its declining value lies with the Riksbank, which has significantly lowered the interest rate, and has not acted to defend the exchange rate yet.[citation needed] In the second half of 2009 and the start of 2010, the krona started to appreciate; during late 2010 and early 2011 it continued to appreciate at a quicker rate. The exchange rate is currently between 8.5 and 9.0 SEK per EUR. In July 2012, due to crisis in Greece and fear of further spreading to Italy and Spain, the euro continued to decline making the Swedish krona stronger, reaching as low as 8.17 SEK per EUR.

The euro[edit]

Main article: Sweden and the euro

According to the 1995 accession treaty, Sweden is required to join the eurozone and therefore must convert to the euro at some point. Notwithstanding this, on 14 September 2003, a consultative Swedish referendum was held on the euro, in which 56% of voters were opposed to the adoption of the currency, out of an overall turnout of 82.6%.[23] The Swedish government has argued such a course of action is possible since one of the requirements for eurozone membership is a prior two-year membership of the ERM II. By simply choosing to stay outside the exchange rate mechanism, the Swedish government is provided a formal loophole avoiding the theoretical requirement of adopting the euro.

Some[who?] of Sweden's major parties continue to believe it would be in the national interest to join, but all parties have pledged to abide by the results of the referendum,[needs update] and none have shown any interest in raising the issue again. There was an agreement among the parties not to discuss the issue before the 2010 general election. After that, a debate could have started, leading to a new referendum but none has. Polls in 2005 and 2006 generally showed about 55% of respondents being opposed and 45% in favor (with 15% undecided).[citation needed] In a poll from May 2007, 33.3% were in favor, while 53.8% were against and 13.0% were uncertain.[24]

In February 2009, Fredrik Reinfeldt, the Prime Minister of Sweden stated that a new referendum on the euro issue will not be held until support is gained from the people and all the major parties. Therefore, the timing is now at the discretion of the Social Democrats. He added, the request of Mona Sahlin, former leader of the Social Democratic Party, for deferral of a new referendum until after the 2010 mandate period should be respected.[25]

As of 2014, support for Swedish membership of the euro among the general population is low. In September 2013, support fell as low as 9%.[26] The only party in the Riksdag that supports Swedish entry in the euro at the current moment is the centrist Liberal People’s Party.[27]

Current SEK exchange rates

From Google Finance: AUD CAD CHF EUR GBP HKD JPY USD DKK INR NOK
From Yahoo! Finance: AUD CAD CHF EUR GBP HKD JPY USD DKK INR NOK
From XE.com: AUD CAD CHF EUR GBP HKD JPY USD DKK INR NOK
From OANDA.com: AUD CAD CHF EUR GBP HKD JPY USD DKK INR NOK
From fxtop.com: AUD CAD CHF EUR GBP HKD JPY USD DKK INR NOK

See also[edit]

References[edit]

  1. ^ Swedish Riksbank, History of the inflation goal, speech by Deputy Governor Svante Öberg, 21 March 2006. Hosted Swedish Riksbank website. Retrieved December 6, 2007.
  2. ^ "Sveriges Riksbank/Riksbanken - Inflationen just nu". Riksbank.se. 2010-05-11. Retrieved 2010-05-28. 
  3. ^ [1].
  4. ^ Sveriges Riksbank. Valid coins." Accessed 25 Feb 2011.
  5. ^ Sveriges Riksbank/Riksbanken - 1-krona
  6. ^ Sveriges Riksbank/Riksbanken - 5-krona
  7. ^ Sveriges Riksbank/Riksbanken - 10-krona
  8. ^ 2-krona, Swedish Riksbank website. Retrieved December 6, 2007.
  9. ^ Norris, Don. "Coin Types from Sweden". Worldcoingallery.com. Retrieved 2010-12-28. 
  10. ^ Redemption of coins, Swedish Riksbank website. Retrieved December 6, 2007.
  11. ^ The Local - Riksbank urges Sweden to ditch 50 öre coin English Language Article noting the removal of the öre.
  12. ^ 50-öringen slopas i oktober
  13. ^ "The new coins". Sveriges Riksbank. Sveriges Riksbank. Retrieved 12 September 2012. 
  14. ^ "Sveriges Riksbank/Riksbanken — Valid banknotes". Riksbank.com. 2009-08-19. Retrieved 2010-05-28. 
  15. ^ 1000 kronor note
  16. ^ http://www.riksbank.se/en/Notes-and-coins/New-notes-and-coins1/The-new-banknotes/Artistic-starting-point/
  17. ^ http://www.riksbank.se/en/Notes-and-coins/New-notes-and-coins1/The-new-banknotes/Artistic-starting-point/
  18. ^ Sveriges Riksbank. "Colour, material and format". Sveriges Riksbank. Retrieved 25 June 2013. 
  19. ^ "World’s Most Traded Currencies By Value 2012". http://www.investopedia.com/. Retrieved 10 June 2013. 
  20. ^ "Report on global foreign exchange market activity in 2013" (PDF). Triennial Central Bank Survey. Basel, Switzerland: Bank for International Settlements. April 2013. p. 12. Retrieved 22 October 2013. 
  21. ^ The total sum is 200% because each currency trade always involves a currency pair.
  22. ^ Öberg: Sweden – a low inflation economy, speech by Deputy Governor Svante Öberg, 21 March 2006. Hosted Swedish Riksbank website. Retrieved December 6, 2007.
  23. ^ http://www.val.se/tidigare_val/emu2003/index.html, retrieved 2011-06-16  Missing or empty |title= (help)
  24. ^ "Nej till euron vid folkomröstning i maj". Statistics Sweden. 2007-06-19. Retrieved 2007-12-06. 
  25. ^ "Expert: Dags att slopa kronan". 2009-02-27. Retrieved 2014-06-12. 
  26. ^ "Support for euro hits all-time low in Sweden". EurActiv. EurActiv. Retrieved 11 May 2014. 
  27. ^ "Europa". Folkpartiet. Retrieved 11 May 2014. 

Further reading[edit]

External links[edit]