Note: This currency has been replaced by the Euro.
Overview
The official currency for Finland until 2002 was the Finnish Markka (FIM). The Markka was subdivided into pennies; 100 pennies = 1 Markka. The abbreviation for the Markka was mk. In 2002, the Markka was replaced by the Euro.
Economy
Finland’s economy is a mixed economy and is highly industrialized.
Main industries are clothing, textiles, shipbuilding, pulp and paper, electronics, metals, metal products, and scientific instruments.
Export products are timber, paper and pulp, chemicals, metals, electrical equipment, and optical equipment.
Import products are transport equipment, fabrics, yarn, iron, steel, foodstuffs, chemicals, petroleum and petroleum products, and grains.
Unemployment is estimated at 8.1% and inflation at 1.2%.
The service industry accounts for 68% of the yearly GDP, followed by 29.1% for industry, and 2.6% for agriculture.
The European Union manages the trade policy, which is a big change for Finland because they supported free trade.
History
The Bank of Finland introduced the first Markka in 1860 to replace the Russian Ruble.
In 1865, the Markka was no longer part of the Russian Ruble and was evaluated against silver.
In 1917, Finland became independent and joined the gold standard.
During the Second World War the Markka lost value, and in 1963 a new Markka was introduced.
In 1948, Finland aligned itself with the Brent Woods agreement.
The Brent Woods agreement dissolved in 1971 and the Markka was depreciating against the US Dollar and not gaining against the German Mark.
During the 1980s and 1990s economic controls were abolished and the market started to liberalize.
In 1969, the Mardka joined the ERM system and in 1999 formed a fraction of the Euro in 1999.
