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The Global History of Currencies (GHOC)
An Exclusive Service of Global Financial Data
Denmark
The Kingdom of Denmark has existed for over 1000 years.
Silver coins were first issued in Denmark around 995 by Svend Tveskaeg while the first organized coinage occurred in 1020 under Knud den Store. These coins were influenced by English coins. The first Danish gold coin was issued under King Hans (1481-1513). This included a gold noble and gulden, equal to 32 skillings.
The Krone existed as a unit of account (DKA) as early as 1513 with 1 Gulden equal to 3 Krone, 24 Marks or 128 Skillings. The Rigsdaler Courant (DKC) became the principal coin of the realm in 1544, though there were several monetary systems based on the Rigsdaler. In general the Ducat was divisible into 2 Rigsdaler, 3 Krone, 12 Mark, 96 Stuyver, 192 Skilling Danske, 384 Fyrk, 576 Hvid or 2304 Pfennig until 1813.
Banknotes were first issued in 1713 during the Great Nordic War, though withdrawn in 1728. The Kurant Bank became the first bank of issue in 1736, though due to overissue, the notes lost their exchangeability and were converted into legal tender in 1757. Den Dansk-Norske Speciesbank was established in 1757 and received the sole right to issue banknotes in Norway and Denmark, though it too abused its issue rights. In January 1813, the note-issuing Courant Bank collapsed as a result of wartime inflation. The �kurantrigsdaler� were converted into �rigsbankdaler� at a ratio of 6 to 1, though by September 1813, the paper rigsbankdaler had dropped to 9% of its specie value. The Rigsbank was founded in 1813, and the Rigsbankdaler (DKR) was introduced, with 1 Speciesdaler (Silver Double Rigsbankdaler) equal to 2 Rigsbankdaler or 2 Rigsdaler Rigsmont, and divisible into 12 Marks or 192 Skillings. The Nationalbanken i Kjobenhavn was established on August 1, 1818 as a private limited liabililty corporation, separate from the government, that had the sole right to issue banknotes for 80 years because the government itself had been unable to restrain its issuance of banknotes in the past. By the 1830s, banknotes had returned to par. Norway shared Denmark�s monetary system until 1914.
Denmark joined the Scandinavian Monetary Union in 1873. Norwegian and Swedish coins were legal tender in Denmark until 1914. Denmark introduced the Krone (DKK) with 2 Krone equal to 1 Rigsbankdaler during the currency reform of May 27, 1873, making it divisible into 100 Oere beginning on January 1, 1875. Denmark also switched to the Gold Standard, following Germany�s lead, and joined the Scandinavian Monetary Union. Coins of Norway and Sweden were legal tender in Denmark under the Scandinavian Monetary Union, which ended de facto in 1914 and de jure in the 1924. Belgium left the Gold Stndard on August 2, 1914, reintroduced it under the Currency Act of 1924, establishing parity in Decmeber 1926, then left the gold standard again on September 29, 1931. During the German occupation of 1940 to 1945, Reichsmark also circulated with the Reichsmark and Krone at par with one another. After Germany surrendered, Allied Military Krone were briefly used in Denmark during May and June 1945 until sufficient Krone could be introduced. An exchange rate of 1 GBP = 24 DKK or 1 USD = 5.948 DKK was used. Denmark devalued the Krone on September 19, 1949, following the UK�s devaluation of the Pound Sterling by one day. Denmark, as well as the other former members of the Scandinavian Monetary Union, currently does not plan to join the Euro.
The Treasury and three Danish banks issued banknotes until 1818 when the National Bank of Copenhagen was founded. It has been the sole banknote issuing authority since then, though it was nationalized on May 28, 1936 and renamed the Danmarks Nationalbank.
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