Danish Krone - DKK

Issued by the Denmark National Bank, the Danish Krone (DDK – « danske kroner » in Danish) has been the official currency of the Kingdom of Denmark since 1873.

Integrated to the Bretton Woods Agreements of 1944, the Danish Krone became convertible into dollars (with a fixed rate) from 1958, then the currency associate to the “European currency snake” from 1972 and stayed in the European Monetary System that defined the European currencies parity between them before the introduction of the Euro (January, 1st 1999), Denmark joined the EEC (future European Union) from 1973.

The Danish Krone is linked to the Euro via the ERM II (Exchange Rate Mechanism II) that defined the maximum fluctuation band (+/- 15%) of the currencies that are associated with the Euro.

For practical purposes, the Denmark National Bank fixed for itself, as a fluctuation margin of the Danish Krone against Euro, the number +/- 2.25% (old convergence criterion), even if the real variations observed for almost 10 years are in a narrow band of +/- 0.5%.

After people voted « no » to the Maastricht Treaty in 1992, Denmark obtained four dispensations to the common rules established by the different current European Treaties in the European Union. One of these dispensations (similar to the one given to the United Kingdom) regards the obligatory entry in the Euro area.

Even if the Danes officially refused the adoption of the Euro during a referendum held in September 2000, it seems to be more favorable today and a new referendum is no to be excluded.

Since January 2001, the highest level of the exchange value EUR/DKK was noted in February 2006 at 7.4674 and the lowest in April 2003 at 7.4234.

The cross quoted at EUR/DKK = 7.4437 in October 2009.