Description

The Swedish krona (SEK) has been the currency of Sweden since 1873. It is issued by the Swedish central bank, Sveriges Riksbank. The symbol of the currency is kr. One krona is subdivided into 100 öre. In English, the currency is sometimes referred to as the Swedish crown (‘krona’ means ‘crown’ in Swedish).

Coins currently in circulation are 1 krona, and 5 and 10 kronor. Banknotes are in denominations of 20, 50, 100, and 500 kronor.

Economy

• Sweden has achieved an enviable standard of living, due to high-tech capitalism, extensive social benefits, a modern distribution system, and a highly skilled labor force.
• The economy is heavily oriented to foreign trade, utilizing a resource base of timber, hydro power, and iron ore.
• The global economic crisis of 2008 reduced export demand and consumption, causing the Swedish economy to slide into recession despite its strong finances and underlying fundamentals. Strong commodity exports contributed to a strong rebound in 2010-2011.

History

• The Swedish Krona was introduced in 1873, replacing the Riksdaler at par. The currency was introduced as a result of the Scandinavian Monetary Union with Norway and Denmark, which lasted until World War I. Currencies under the treaty were under the gold standard.
• The Monetary Union ended with the outbreak of World War I in 1914. Sweden abandoned the gold standard on August 2, 1914, and without a fixed exchange rate the union came to an end.
• By treaty, Sweden is required to join the eurozone and convert to using the Euro. However, most Swedes are opposed to adopting the currency. On September 14, 2003, 56% of a high turnout of voters rejected adopting the Euro. Taking advantage of a loophole, the Swedish government has opted not to join ERM II, a precondition to adopting the Euro.