The E-krona is a digital currency controlled by the Riksbank. The E-krona hasn’t officially been adopted because cash is still in use in the country. However, in the future, it’s possible that cash payments will be eliminated altogether. The Scandinavian Monetary Union was a fixed exchange rate system—based on the gold standard—between Sweden and Denmark. While member countries still had their own currencies, the Union ensured exchange rate stability. The krona has been the currency of Sweden since 1873.
- Initially, the SEK strengthened; pundits saw it as a positive that Sweden was taking a strong initiative to correct the economy amidst the Great Recession of 2007 to 2009.
- A new 5-kronor coin was designed in 1974, at a time when there were political efforts to abandon the monarchy and the young inexperienced king. The monarchy remained, but the 5-kronor was not given a portrait.
- The E-krona is currently (early 2023) in pilot phase 2, follow the progress at Riksbanken.
- The 1, 2 and 5 öre were in bronze, the 10-, 25-, 50-öre and 1-krona and 2-kronor were in silver, and the 10- and 20-kronor were in gold.
- Sweden is a wealthy country and in the 1970s and 1980s the value of banknotes and coins per capita was one of the highest in the world.
- Below, you’ll find Swedish Krona rates and a currency converter.
Investopedia does not provide tax, investment, or financial services and advice. The information is presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Investing involves risk, including the possible loss of principal. Still, global uncertainties, especially during threats of an international trade war, have led to some losses for the safe-haven krona over the last four years. A looser economic policy has led to overall weakness in the Swedish krona in the four years from 2015 to 2019. Although many expect the krona to eventually rebound strongly, some have called for a switch to the euro given the krona’s global sensitivity.
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Banknotes (paper money) come in denominations of 20, 50, 100, 200, 500, and 1,000 kronor, and coins come in denominations of 1, 2, 5, and 10 kronor. SEK is one of the most exchanged currencies by value. The currency’s been floating against other world currencies since 1992, with the central bank acting as required to maintain the SEK value. The most commonly exchanged currency pair that involves the Swedish krona is the Euro/SEK.
- However, most of them were purchased and melted down by investors exploiting market inefficiencies while collectors retained the others.
- SEK is the currency code for the Swedish krona, the currency for Sweden.
- The E-krona hasn’t officially been adopted because cash is still in use in the country.
- Wise gives you the real, mid-market, exchange rate, so you can make huge savings on your international money transfers.
In order to use a credit card to pay or withdraw cash, it must have a chip and a personal identification number (PIN). If the SEK/USD rate moves up to 0.1425, the SEK has increased in value relative to the USD, and the USD has decreased in value relative to the krona. The Swedish krona replaced the riksdaler riksmynt at par in 1873, when the Scandinavian Monetary Union was formed. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.
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When the banknote is tilted, the picture in the striped band appears to move. The Vasa banknote without security thread became invalid after 31 December 2013 at which time there was only 10 million in circulation. The Vasa banknotes with the security thread became invalid after 30 June 2016 at which time there was under 4 million in circulation. Replacement banknotes featuring Dag Hammarskjöld became valid on 1 October 2015, but were circulated in considerably fewer quantities (less than 3.5 million), thus reducing the supply of cash in Sweden. Sweden is a wealthy country and in the 1970s and 1980s the value of banknotes and coins per capita was one of the highest in the world. In 1991, the largest banknote worth 10,000kr that was in circulation since 1958 was declared invalid and no longer was legal tender.
Due to metal shortages during World War I, iron replaced bronze between 1917 and 1919. Nickel-bronze replaced silver in the 10, 25 and 50 öre in 1920, with silver returning in 1927. The three currencies were on the gold standard, with the krona/krone defined as 1⁄2480 of a kilogram of pure gold. The Swedish krona (Svensk krona) is the currency used in Sweden. The ISO code SEK and currency sign “kr” are commonly used.
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This Swedish Krona and United States Dollar convertor is up to date with exchange rates from October 2, 2023. According to the 1994 accession treaty (effective 1 January 1995), Sweden is required to join the eurozone and therefore must convert to the euro once the convergence criteria are met. By simply not joining the exchange rate mechanism, the Swedish government is provided a formal loophole avoiding the theoretical requirement of adopting the euro.
United States Dollar to Swedish Krona
These percentages show how much the exchange rate has fluctuated over the last 30 and 90-day periods. These are the lowest points the exchange rate has been at in the last 30 and 90-day periods. These are the highest points the exchange rate has been at in the last 30 and 90-day periods. SEK has a strong currency correlation with the currencies of other Nordic countries, such as the Danish krone (DKK) and the Norwegian krone (NOK). While most countries in the European Union have adopted the euro, Sweden, like Denmark and Norway, is one of a handful of EU member nations that have opted to maintain their legacy currencies.
In 1942, iron replaced bronze again, and the silver content of the other coins was decreased. In 1962, silver was substituted by cupronickel in coins of 10, 25, and 50 öre. Iron replaced bronze between 1917 and 1919 due to metal shortages during the First World War. Nickel-bronze in 10, 25, and 50 öre (one öre is equal to 1/100th of a krona) was replaced with silver in 1920; however, silver returned in 1927.
However, if you received exceptional service and you want to show your appreciation, it’s customary to leave a small tip, usually around 10-15%. Currency exchange offices, such as Forex and Tavex, are also available for exchanging currency or cashing travelers’ cheques. However, major credit cards, such as Visa, MasterCard, and Maestro, are widely accepted throughout the country.
According to Skingsley, “what some consumers, smaller companies and local clubs often see as a problem, is not so much getting hold of cash, but being able to deposit it in a bank account.” To see where Swedish krona ranks pips trading in “most traded currencies”, read the article on the Foreign exchange market. An exhaustive list of every banknote design since 1874 is not included, but the following five designs were or will be retired in 2016–2017.
Despite Sweden’s relatively small economy, its well-educated and tech-savvy workforce and the fact that it is home to many multinational corporations have led many forex observers to classify SEK as a safe haven currency. A safe haven is expected to retain or increase in value during times of market turbulence. To see how circulation of the Swedish krona investing portfolio ranks compared to other currencies see Bank for International Settlements#Red Books. Tipping is not a traditional practice in Sweden, as service charges are typically included in the prices of goods and services. This means that the prices you see on menus and bills will already include a service charge, and you don’t need to leave an additional tip.
The SEK and the euro
Under the 1994 Accession Treaty, Sweden is supposed to join the Eurozone and adopt the euro. In 2003, however, a referendum was held, resulting in 56% opposition to joining. There is still much debate whether it would be in the best interest for the country to join and as such, has delayed the adoption of the euro. Born and raised in Sweden, now living in the US, Veronica has a passion for Scandinavian travel. As a former product design specialist with a Scandinavian tour operator, she has extensive knowledge of tour planning and the Scandinavian countries. It’s important to note that in Sweden, service employees are paid a fair wage and do not rely on tips as a significant source of income as it is the case in other countries.
For a discussion of the financial and banking crisis that hit Sweden in the early 1990s see the article History of Sweden (1991–present) and Swedish banking rescue. Banks and other transfer services have a dirty little secret. They add hidden markups to their exchange rates – charging you more without your knowledge. In 1968, the 2-kronor switched to cupronickel and the 1-krona switched to cupronickel-clad copper (it was replaced entirely by cupronickel in 1982).
Due to inflation and major economic problems, the currency depreciated and Sweden returned to the silver standard system in 1776. The 1, 2, 5, 10 SEK coins are currently in circulation, whereas 20 SEK, 50 SEK, 100 SEK, 200 SEK, 500 SEK, and 1000 SEK notes are issued by the central bank. Cash is seeing a substantial decline in usage in the country, leading to the adoption of a digital currency, an e-Krona, and the removal of many automated teller machines (ATMs). Banks often advertise free or low-cost transfers, but add a hidden markup to the exchange rate. Wise gives you the real, mid-market, exchange rate, so you can make huge savings on your international money transfers.
A 100-kronor banknote (3rd design since 1898) was printed 1986–2000 with a portrait of the botanist Carl Linnaeus and on the reverse was a drawing of a bee pollinating a flower. A more secure version with the same portrait was introduced in 2001 and became invalid after 30 June 2017. A 50-kronor banknote (3rd design since 1896) was printed 1996–2003 with a portrait of the singer Jenny Lind and on the reverse was a picture of a silver harp and its tonal range. A more secure version with the same portrait was printed from 2006 to 2011 and became invalid after 30 June 2016. Between 1873 and 1876, coins in denominations of 1, 2, 5, 10, 25, and 50 öre and 1, 2, 10, and 20 kronor were introduced.