SEK – Swedish Krona

SEK – Swedish Krona

SEK – Swedish Krona

The Swedish Krona is the national and legally recognised as well as accepted form of currency of Sweden and it is worth noting that the Swedish Krona is also sometimes referred to as the Swedish Crown within English parlance. The reason for this is that the word Krona is itself the Swedish term for a crown, however, this is an entirely English phenomena and is most certainly not replicated in Sweden in any guise or form whatsoever.

Another salient and relevant fact to be aware of with regards to the Swedish Krona is that although the terms of the Swedish currency system a single Krona consists of 100 Öre, the official production of the Öre was abolished as of September 2010. It is not yet known whether the Öre coins will then be collected by the various banking bodies and financial institutions in order to cull them entirely, although it would seem that this a pressing agenda within Sweden.

The fact that production of the Öre has come to a virtual standstill has led many non-Swedish nationals to erroneously assume that the Öre is no longer an acceptable or valid form of currency. This is not strictly true, as the Öre is still recognised and accepted as legal tender within Sweden, however, the value of the transaction will always be automatically rounded up to the nearest Krona. Therefore, a transaction valued at 2.36 will be converted into 3 Krona. However, one workaround this somewhat arbitrary rule is that this rule will only ever come into effect if payment is made by cash. Therefore, payment by cheque, online payment, e-wallet services or credit card are all exempted.

The Swedish Krona came into existence as a consequence of the Scandinavian Monetary Union policy which was passed and brought into legal effect in order to ensure that there was a greater degree of harmonization between the nations that were signatories to the Union. Passed in 1873, the provisions of the Union took effect immediately, meaning that the former currency system, the riskdaler, was then rendered defunct and obsolete.

One year later, the Riskbank (the central bank of Sweden which is responsible for setting national interest rates and other sundry fiscal policies) began production in earnest, of the Swedish Krona bank notes. However, the progress of the Swedish Krona hit something of a brick wall during the course of the Second World War and the reason for this was due to the fact that many of the metals commonly used to produce currency coinage were needed for military resources instead.

This meant that different metals and alloys were used to create the coins, and in some instances, specific denominations of coins were abolished outright and forthwith.

2002 was not an especially happy or prosperous time for the Swedish Krona and this was reflected by virtue of the fact that the exchange rate between the Swedish Krona and the US Dollar stood at USD/SEK = 10.2375 during the end of this year. This was in part as a result of strong economic development within the US, alongside a decline in the value of European commodities.

2010 heralded a significant rise in the strength of the Krona against its rival, the US Dollar and so the Krona exchange rate 6.56 which was an increase of 1% which may not seem like a significant amount but which proved to provide a much needed infusion to its economy.

There have been calls upon the Swedish parliament to make significant demands to the currency in order to better immunise it from the effects of recession however, whether such measures will be introduced into law remains to be seen.

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