Denmark - Money
Since the 1980s, Denmark has pursued a fixed exchange rate linked to the German mark. On 1 January 1999, monetary policy was linked to the new European Central Bank. In September 2000, Denmark opted out of the European Monetary Union's (EMU) third phase (establishment of a joint EU currency and relinquishment of jurisdiction over monetary policy), although the country's economic performance exceeds the established criteria for membership. This was due to resistance on the right, especially from nationalist groups who wish to retain the Danish currency and not tie its economy so closely to that of Europe, and equal resistance on the left, where many fear that equalizing human rights and environmental regulations with the EU will chip away at the Danish welfare state and its environmentally-conscious business practices.
The National Bank of Denmark (Danmarks Nation-albanken) is the only bank of issue in the country and enjoys a special status as a self-governing institution under government supervision. Profits in the National Bank
|Exchange rates: Denmark|
|Danish kroner (DKr) per US$1|
|Note: The Danes rejected the Euro in a September 28, 2000 referendum.|
|SOURCE: CIA World Factbook 2001 [ONLINE].|
revert to the state treasury. Although Denmark has retained its own currency, separate from the EU, its currency is so closely tied to the euro that monetary policy often closely follows the European Central Bank. The National Bank lends to smaller banks and to the central government, and is responsible for administration of the foreign exchange policy.
The Copenhagen Stock Exchange (CSE) was established in the capital in 1861, and in 1999 had 233 listed companies. At the end of 1999 its market capitalization was US$105.29 billion. The CSE was a pioneer in computerized trading, being the first in the world to introduce electronic bonds and shares.