Scandinavian Monetary Union

The Scandinavian Monetary Union (Swedish: Skandinaviska myntunionen, the Danish: Norwegian Skandinaviske møntunion, : Skandinaviske myntunion) was a monetary union consisted the Sweden and the Denmark the May 5th 1873 by which their currencies were fixed compared to the Or. The Norway, which was in the union with the Sweden, however with full interior autonomy, joined the union two years after (403 grams of gold). This monetary union was one of the convincing results of the political movement Scandinavian at the 19th century.

The union provided rates and stability in monetary terms, but the Member States continued to have their own currencies. Unforeseen effect, the safety perceived by this union led to the acceptance of the various currencies in practically all the zone.

The name of its currency of Sweden was changed Riksdaler into Krona . Krone was already the name of the Danish currency and when Norway adhered, they also had a Norwegian krone . The name means " literally; couronne" and the differences in the epellation represent the differences between the Scandinavian languages.

In 1905, the political union between Sweden and Norway was dissolved, but this does not have affected the co-operation in the monetary union. The beginning of the First World War in 1914 put an end to the monetary union. Sweden gave up the equivalence of its currency to gold the August 2nd 1914 and without rate, freedom of movement stopped.

Sweden, Norway and Denmark always employ the same currencies as during the monetary union, but they lost their equivalence with gold, with one, in 1914.

The Króna Icelandic is a derivative of the Danish crown, after the independence gained by the island in 1918 then full sovereignty in 1944.

Today, these countries do not form part of the Euro area and currently use their own currencies.

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