Cash in Danish krone (DKK)

History of Denmark's currency

The first known Danish currency was the penny or penning, which appeared as early as 825-840 AD. Pennings were minted during the millennium with images of the Danish kings ruling for this or that period.

The exchange rate of a penny was set based on the Carolingian silver standard: 12 pennings were offered for 1 shilling, and a pound at that time was worth 20 shillings. Over time, however, the metal used to mint Danish coins gradually depreciated. This caused the inhabitants to gradually lose confidence in the government, which repeatedly revised the Danish currency.

For the first time, the krone as a unit of account appeared in Denmark only in 1513and cost at that time 8 marks. The krone takes its name from the currency "couronndor" (couronne d'or), first minted in the form of coins in France in 1340 under King Philip VI. Later, the name "krona" was used in many Northern European countries, including Denmark and Sweden.

The Danish currency system changed regularly between the 16th and 19th centuries, and the modern krone was introduced only in 1875, replacing the then-current rigsdaler, whose exchange rate was equal to 2 Danish kroner. The krone was submitted after forming the Scandinavian Monetary Union in 1873, with Denmark, Sweden and Norway as members. At the same time, the currency's value was established: 1 krone was equated to 0.7 grammes of gold.

The Scandinavian Currency Union was terminated in 1914. In the same year, the gold standard was canceled. However, it was reintroduced in 1924, and in 1931, it was finally canceled.

Cash crowns continued to be printed until 2014. The National Bank printed its last banknote in settlements at the end of 2016. In addition to Denmark itself, its krones are used for mutual settlements in the Faroe Islands and Greenland.

Coins and banknotes

One krone is divided into 100 öre. Today, Danish coins are available in denominations of 50 öre, as well as 1, 2, 5, 10 and 20 kroner. The 50 öre coins are made of pewter and bronze and feature the crown of King Christian V on the front (obverse) and the Royal Mint symbol (heart) on the reverse (reverse).

The 1, 2 and 5 kroner coins are minted from cupronickel or copper-nickel alloy. These coins bear the monogram of Queen Margrethe II. Finally, the 10 and 20 coins are made of aluminium bronze. They depict Queen Margrethe II and the national emblem of Denmark.

Denmark also uses multi-coloured banknotes (purple, orange, green, blue and red) of different denominations, on one side of which are famous Danish bridges, and on the reverse side — various artefacts of historical value for this country:

• 50 kroner — Sallingsunn Bridge, Skarpsalling Vessel;
• 100 kroner — Little Belt Bridge, Hinsgavl dagger;
• 200 crowns — Knippelsbro Bridge, Landstrup belt plate;
• 500 crowns — Queen Alexandrina Bridge, a bronze vessel from Keldby;
• 1000 kroner — Great Belt Bridge, Solvognen, also known as the 18th-17th century BC sun wagon, was discovered in Zealand.

The role of the Danish krone in the economy of the country and the region

The National Bank of Denmark maintains this credit policy to ensure a stable exchange rate by adjusting the interest or key rate. However, in doing so, the central bank cannot conduct monetary policy to stabilize other areas of the economy, such as inflation or unemployment rates. In this way, Denmark differs fundamentally from neighbouring countries such as Sweden and Norway.

Like Sweden, Denmark has suffered from numerous bank robberies over a long period of time, so the government has gone about reducing cash holdings. In 2000, more than 220 Danish banks were robbed, but by 2017, the number of robberies had gradually decreased by 10 per year.

According to the Danish tax authorities, only about 20 bank branches currently hold cash kroner. The policy to reduce cash reserves has worked, and 2022 is the first year in which no robberies have been recorded.

Danish krone exchange rate

The currency is listed on exchanges under the ticker DKK. In November 2023, the exchange rate of the Danish krone against the US dollar was 0.14. Over the last 10 years, the price of the Danish krone has fallen by about 23%, which is not very much compared to many other currencies.

Since the beginning of 2023, the DKK exchange rate has barely changed against the US dollar or other major currencies. This indicates a relatively solid economic system over this period. After a sharp fall in 2014, the exchange rate of the Danish krone has declined marginally compared to the major currencies.

In the 2000 referendum, Danish voters rejected the euro in favour of the krone. Denmark still follows the tradition of sticking to a fixed exchange rate: the Danish krone exchange rate is effectively pegged to the euro at around €0.133-€0.136.

What can I exchange the Danish krone for?

As the Danish krone is the primary and only means of payment in Denmark, it can be exchanged for any other currencies and assets, as well as paid in cash for any goods and services.

The main thing to consider when exchanging is the commissions charged for such a transaction. Usually, banks offer the lowest fees and special exchange offices. Besides, these are the most accessible ways for non-residents: cash exchange does not require a bank account.

You can also exchange Danish kroner for various assets and other currencies through a broker. However, brokers do not always allow you to deposit cash into your account, and you may need to be a resident to open an account. If you have cash on hand, you are unlikely to have problems paying anywhere in Denmark.