Currency facts
The history of the Norwegian currency
Norway has been heavily influenced by neighboring countries for many years of its history. Conflicts turned the axis of political connections alternately towards Denmark and Sweden. At some point, however, Denmark and Sweden decided to form an alliance, which resulted in the creation of the Scandinavian Monetary Union, which was joined two years later by Norway. All countries, under the power of the Union, introduced one common currency on their territories. The Union did very well in times of crises and survived until the outbreak of World War I in 1914. After its dissolution, all parties belonging to it decided to keep the Krona as their currency, adding a nationality element to its name. Norway has decided not to join the European Union. However, the government chose membership in the European Free Trade Association (EFTA) and the status of a country that closely cooperates with the EU. Thanks to this status, the Norwegians got the opportunity to change their currency to the European one. A referendum was held on this matter, in which it was decided to abandon this idea, and thus the discussion on this subject was closed.
Interesting facts about Norwegian Kroner
Norwegian Kroner coins in denominations of 1 NOK and 5 NOK have holes in the central part of the coin. This procedure makes it easier for people with visual problems to distinguish between money. In addition, holey coins are so distinctive that they are very hard to counterfeit.
The legend told by the Norwegians says that the holes in the coins refer to their tradition, which symbolizes the old way of carrying money strung on a thong. The 100 (NOK) banknote shows a Viking boat, it is a boat from Gokstad , one of the most important monuments of Norway, it is in the Viking Ship Museum in Oslo.
What does the Norwegian Krone exchange rate depend on?
The specificity of the Norwegian economy is heavily dependent on oil and natural gas exports. The share of crude oil and natural gas in the value of Norwegian exports is approx. 57%. Norway’s dependence on hydrocarbons is clearly affecting the performance of the Norwegian Krone. NOK is a commodity currency, the relationship between the price of crude oil and the Norwegian Krone is very noticeable when the price of “black gold” fluctuates.
The specificity and importance of SAIs on the market
The Norwegian Krone seems to be an unpopular currency. However, statistics show that the NOK is more important globally than, for example, the Zloty. In terms of the size of the economy, Poland outweighs Norway, but this factor is not of decisive importance here. Norway is one of the largest exporters of crude oil and natural gas, as well as an important fish exporter and shipbuilder, and its importance is much higher in these sectors. In terms of share in the foreign exchange market, the Norwegian Krone achieves similar results to the Hong Kong Dollar, Singapore Dollar, Mexican peso, New Zealand Dollar and Swedish Krona.
