Euro / Danish Krone - EUR/DKK

An historical member of the European Union (former EEC) since 1973, Denmark has an exemption to the usual obligation that the other EU members have to join the Euro area. The Danes (who voted “no” to the Maastricht Treaty in 1992, and “no” to the proposition to adopt the Euro in September 2000) seem to be attached to the sovereignty that is symbolized by the maintaining of its own national currency, the Danish krone (DKK).

In theory, the Danish krone is linked with the Euro by the ERM II (Exchange Rate Mechanism II- a link that allows Denmark to join the Euro area as soon as its citizens will want it, if they accept one day). The ERM II defines a maximum fluctuation band of +/-15% between the Danish krone and the Euro.

In reality, the Central Bank of Denmark has defined maximum fluctuation band of +/-2.25%, but the fluctuations observed in the last 10 years were of about +/-0.5%.

Sp the EUR/DKK cross listed at 7.4652 on January, 2d 2001, and had the same exchange value on March, 13th 2001.

Then a decrease of the EUR/DKK cross was observed until July 2003, a lower point (the lower of the cross so the higher of the Danish krone against the Euro on the last 10 years) was reached at 7.4234 in April 2003.

Risen at 7.45 on February 2004, the EUR/DKK exchange rate decreases again at 7.4287 in November 2004, then slowly rises under the control of the Central Bank of Denmark to a higher point of 7.6774 reached in February 2006.

A decrease was observed until EUR/DKK = 7.4412 in July 2007, then an increase until EUR/DKK = 7.6424 in May 2008, to finish a new decrease (and the concomitant re-appreciation of the Danish Krone) at 7.4437 by mid-October 2009.

So the EUR/DKK cross has been fluctuating between 7.42 and 7.46 since 2001.