Euro / Norwegian Krone - EUR/NOK

As Norway has never been part of the European Union, after Norwegians twice refuse to join the EU during two referendums in 1972 and 1994, the Norwegian Krone (NOK) is a currency which evolution has for a long time been the same as the other great European currencies’ one, before the introduction of the Euro.

It was first linked with the American Dollar with a fixed parity (1 USD = 4.03 NOK) from 1946 to 1971, then adopted a floating exchange rate regime beyond the attempt to join the “European Monetary Snake” in the 70s.

Structurally, the Norwegian Krone exchange rates really depend on the oil exchange rates; in fact, Norway is an important oil exporter. The NOK tends to increase in value when the oil rates increase.

From January 2001 (EUR/NOK = 8.2270) to January 2003 (EUR/NOK = 7.2420), we observed on the Forex an appreciation of the Norwegian Krone against the Euro comparable to the evolutions of all the other currencies in relation to the new comer (as the Euro was introduced on January, 1st 1999, but its effective enter into circulation was only on January, 1st 2002).

Then, the Euro wins ground on the Norwegian Krone, but we observe until August 2008 the maintaining of parities contained in a narrow fluctuation band (between 7.80 and 8.50) : EUR/NOK = 8.4940 in July 2004, EUR/NOK = 7.7970 in April 2006, EUR/NOK = 8.4710 in October 2006, EUR/NOK = 7.9170 in August 2008.

In the context of the world financial crisis, but also of the sudden collapse of the oil exchange rates that intervenes during the Spring of 2008, the Norwegian Krone depreciates quickly against the Euro, until the higher point of the EUR/NOK cross reached in December 2008 at 9.9450.

During the year 2009 (and with th increase of the oil exchange rates), the adjustment is fast again in favor of the Norwegian Krone : EUR/NOK = 8.6900 in February 2009, then EUR/NOK = 8.2840 in October 2009.