50 KR coin. Date:1992 Norwegian Krone

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• published: 30 Mar 2016
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Fimmtiu Kronur Island The krone was introduced in 1875, replacing the Norwegian speciedaler/spesidaler at a rate of 4 kroner = 1 speciedaler. In doing so, Norway joined the Scandinavian Monetary Union, which had been established in 1873. The Union persisted until 1914.[citation needed] After its dissolution, Denmark, Norway, and Sweden all decided to keep the names of their respective and since then separate currencies. Within the Scandinavian Monetary Union, the krone was on a gold standard of 2,480 kroner = 1 kilogram of pure gold (1 krone = 403.226 milligrams gold). This gold standard was restored between 1916 and 1920 and again in 1928.[citation needed] It was suspended permanently in 1931,[citation needed] when a peg to the British pound of 19.9 kroner = 1 pound was established.[citation needed] (The previous rate had been 18.16 kroner = 1 pound).[citation needed] In 1939, Norway pegged the krone temporarily to the U.S. dollar at a rate of 4.4 kroner = 1 dollar.[citation needed] Nonetheless, Norway would continue to hold the Kingdom's gold reserves. During the German occupation (1940–1945) in the Second World War, the krone was initially pegged to the Reichsmark at a rate of 1 krone = 0.6 Reichsmark, later reduced to 0.57.[citation needed] After the war, a rate of 20 kroner = 1 pound (4.963 kroner = 1 U.S. dollar) was established.[citation needed] The rate to the pound was maintained in 1949, when the pound devalued relative to the U.S. dollar, leading to a rate of 7.142 kroner = 1 U.S. dollar.[citation needed] In December 1992, the Central Bank of Norway abandoned the fixed exchange rate in favor of a floating exchange rate (managed float) due to the heavy speculation against the Norwegian currency in the early 1990s, which lost[clarification needed] the central bank around two billion kroner in defensive purchases of the NOK through usage of foreign currency reserves for a relatively short period of time.