DKK (kr)
Danish krone
Current regime
Trading the DKK between market participants and across borders is unrestricted.
The DKK is pegged to the EUR in accordance with the European Exchange Rate Mechanism, ERM 2. Denmark participates in ERM 2 at a central rate of 746.038 kroner per 100 euro. The standard ERM 2 fluctuation band is +/- 15 per cent. Since the late 1990s, Danmarks Nationalbank has stabilised the krone at a level closer to the central rate. Denmark has concluded an agreement with the European Central Bank (ECB) and the euro area member states on a narrower ERM 2 fluctuation band of +/- 2.25 per cent. This means that the krone can only fluctuate between 762.824 per 100 euro and 729.252 per 100 euro.
Highly standardised payment processing.
History
The original krone was introduced in 1619 and based on a silver standard. This was replaced by a new krone on 1 January 1875 based on a gold standard when Denmark joined the Scandinavian Monetary Union. 2,480 kroner = 1 kilogram fine gold.
After the demise of the union in 1914 the respective countries maintained the names of their currencies, despite the fact that they had become distinct units.
The modern Danish krone has been pegged at a consistent rate since January 1987, to first the German deutschmark and then the euro. The current central rate is a conversion of the previous exchange rate against the D-mark.
The Danish krone accounted for 0.6% of global FX turnover in April 2019.
https://www.nationalbanken.dk/en
