Finnish markka

The Finnish markka (Finnish: Suomen markka, abbreviated mk, Swedish: finsk mark, currency code:FIM) was the currency of Finland from 1860 until 28 February 2002, when it ceased to be legal tender. The markka was replaced by the euro (€), which had been introduced, in cash form, on 1 January 2002, after a transitional period of three years when the euro was the official currency but only existed as 'book money'. The dual circulation period – when both the Finnish markka and the euro had legal tender status – ended on 28 February 2002.

The markka was divided into 100 pennies (Finnish: penni, with numbers penniä, Swedish: penni), postfixed "p"). At the point of conversion, the rate was fixed at €1 = 5.94573 mk.

History

20 Markka, 1862

The markka was introduced in 1860 by the Bank of Finland, replacing the Russian ruble at a rate of four markka equal to one ruble. In 1865 the markka was separated from the Russian ruble and tied to the value of silver. Up to World War 1, the value of markka fluctuated within +23%/-16% of its initial value, but with no trend. However, the markka suffered heavy inflation (91%) during 1914-18. After Finland gained independence in 1917 the currency was backed by gold. Prices remained stable until 1940. The gold standard was abolished in 1940, and the markka suffered heavy inflation (17% annually on average) during the war years and then up to 1951, and again in 1956-57 (11%). In 1963 the markka was replaced by the new markka, equivalent to 100 old units.

Finland

Finland (ⁱ/ˈfɪnlənd/; Finnish: Suomi [suomi]; Swedish: Finland [ˈfɪnland]), officially the Republic of Finland, is a Nordic country in Northern Europe, a peninsula with Gulf of Finland to the south and Gulf of Bothnia to the west. It has land borders with Sweden and Norway to the north and Russia to the east. Finland is part of the geographic region of Fennoscandia, which also includes Scandinavia and parts of Russia.

Finland's population is 5.5 million (2014), staying roughly on the same level with only about 9% increase in 24 years since the last economic depression in 1990. The majority live in the southern regions. The single largest group of foreigners living in Finland are Russians and Estonians, 36% of all of the foreigners (2014). In terms of area, it is the eighth largest country in Europe and the most sparsely populated country in the European Union. Finland is a parliamentary republic with a central government based in the capital Helsinki, local governments in 317 municipalities, and an autonomous region, the Åland Islands. Over 1.4 million people live in the Greater Helsinki metropolitan area, which produces a third of the country's GDP. Other large cities include Tampere, Turku, Oulu, Jyväskylä, Lahti, and Kuopio.

Bank of Finland

The Bank of Finland (Finnish: Suomen Pankki, Swedish: Finlands Bank) is the central bank of Finland. It is the fourth oldest central bank in the world.

History

The Bank of Finland was established on 1 March in 1812 in the city of Turku by Alexander I of Russia. In 1819 it was relocated to Helsinki. The Bank created and regulated the Finnish Markka until Finland adopted the euro in 1999.

Functions and ownership

The Bank of Finland is Finland’s central bank and a member of the European System of Central Banks and of the Eurosystem. It is Finland's monetary authority, and is responsible for the country's currency supply and foreign exchange reserves.

The Bank of Finland is owned by the Republic of Finland and governed by the Finnish Parliament, through the Parliamentary Supervisory Council and the Board of the bank. The Board is responsible for the administration of the bank, and the Parliamentary Supervisory Council for supervising the administration and activities of the bank and for other statutory tasks. The bank is governed under the provisions of the Act on the Bank of Finland, passed in 1998.

Department store

A department store is a retail establishment offering a wide range of consumer goods in different product categories known as "departments". In modern major cities, the department store made a dramatic appearance in the middle of the 19th century, and permanently reshaped shopping habits, and the definition of service and luxury. Similar developments were under way in London (with Whiteleys), in Paris (Le Bon Marché in 1852) and in New York (with Stewart's).

Department stores today have sections that sell the following: clothing, furniture, home appliances, toys, cosmetics, gardening, toiletries, sporting goods, do it yourself, paint, and hardware and additionally select other lines of products such as food, books, jewelry, electronics, stationery, photographic equipment, baby products, and products for pets. Customers check out near the front of the store or, alternatively, at sales counters within each department. Some are part of a retail chain of many stores, while others may be independent retailers. In the 1970s, they came under heavy pressure from discounters. Since 2010, they have come under even heavier pressure from online stores such as Amazon.