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Estonian kroon

(Redirected from Eesti kroon)

The kroon (sign: KR; code: EEK) was the official currency of Estonia for two periods in history: 1928–1940 and 1992–2011. Between 1 January and 14 January 2011, the kroon circulated together with the euro, after which the euro became the sole legal tender in Estonia.[2][3] The kroon was subdivided into 100 cents (senti; singular sent).

Estonian kroon
Eesti kroon (Estonian)
Banknotes of the Estonia kroon.Coins of the Estonia kroon.
ISO 4217
CodeEEK
Unit
Pluralkrooni (Estonian partitive sg.)
SymbolKR‎
Nicknamepaper, The family names of the persons on notes: 100 KR – Koidula, 500 KR – Jakobson etc.
Denominations
Subunit
 1⁄100sent
Plural
 sentsenti (Estonian partitive sg.)
Banknotes
 Freq. used2 KR, 5 KR, 10 KR, 25 KR, 100 KR, 500 KR
 Rarely used1 KR, 50 KR
Coins
 Freq. used10, 20, 50 senti, 1 KR
 Rarely used5 senti, 5 KR
Demographics
Date of introduction20 June 1992
ReplacedSoviet rouble (SUR)
10 SUR = 1 EEK
Date of withdrawal14 January 2011
Replaced byEuro (EUR)
15.6466 EEK = 1 EUR
User(s)None, previously:
 Estonia
Issuance
Central bankBank of Estonia
 Websitewww.eestipank.ee
Valuation
Inflation2.8%
 SourceEuropean Central Bank, May 2010
 MethodHICP
EU Exchange Rate Mechanism (ERM)
Since28 June 2004
Fixed rate since31 December 1998
Replaced by euro, non cash1 January 2011
Replaced by euro, cash14 January 2011
1 € =15.6466 KR
Banddid not fluctuate[1]
This infobox shows the latest status before this currency was rendered obsolete.

The word kroon (Estonian pronunciation: [ˈkroːn], “crown”) is related to that of the Nordic currencies (such as the Swedish krona and the Danish and Norwegian krone) and derived from the Latin word corona ("crown"). The kroon succeeded the mark in 1928 and was in use until the Soviet invasion in 1940 and Estonia's subsequent incorporation into the Soviet Union when it was replaced by the Soviet ruble. After Estonia regained its independence, the kroon was reintroduced in 1992 and replaced by the euro in 2011.

First kroon, 1928–1940

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History

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The kroon became the currency of Estonia on 1 September 1928 after having been a unit of account since 1924.[4] It replaced the mark at a rate of 100 marks = 1 kroon. The kroon was subdivided into 100 senti.

In 1924, the kroon was pegged to the Swedish krona at par, with a gold standard of 2,480 KR = 1 kilogram of pure gold. The standard received real coverage with the reserves backing the kroon. The issue of treasury notes and exchange notes was terminated. In order to secure the credibility of the kroon, the Bank of Estonia exchanged kroon for foreign currency. All these measures restored confidence in the domestic banking and monetary sector, contributing to the economic reinvigoration of the country and to the improvement of the reputation of the Estonian state in the international arena.

During the Great Depression in 1933, the kroon went off the gold standard, devalued 35% and obtained a currency peg with sterling at £1 stg = 18.35 KR.[5] The Estonian kroon kept this peg and circulated until the Soviet occupation of 1940. The kroon was exchanged for the Soviet ruble at a rate of 1 Rbl = 0.8 KR.

Banknotes and coins

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In 1928, the first coins of this currency were issued, nickel-bronze 25 senti pieces. These were followed by bronze 1 sent in 1929, silver 2 krooni in 1930, bronze 5 senti and nickel-bronze 10 senti in 1931, silver 1 kroon in 1933, bronze 2 senti and aluminium-bronze 1 kroon in 1934, nickel-bronze 20 senti in 1935, nickel-bronze 50 senti in 1936.

On 25 July 1940, 4 days after the founding of the Estonian SSR, the last Estonian pre-WW II coin, the new 1 sent (date 1939), was issued.

In 1927, before the kroon was officially introduced, 100 mark banknotes circulated overprinted as "ÜKS KROON" (1 kroon). Eesti Pank introduced 10 krooni notes in 1928, followed by 5 KR and 50 KR in 1929, 20 KR in 1932 and 100 KR in 1935.

1928–1935 Issue
Image Denomination Obverse Reverse
[1] 5 KR Fisherman Coat of arms of Estonia
[2] 10 KR Estonian girl wearing a national costume and holding sheaves Coat of arms of Estonia
[3] 20 KR Shepherd Coat of arms of Estonia
[4] 50 KR Rannamõisa Coat of arms of Estonia
[5] 100 KR Blacksmith Coat of arms of Estonia

Second kroon, 1992–2010

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History

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The kroon was reintroduced as Estonia's currency on 20 June 1992, replacing the Soviet rouble at a rate of 1 KR = 10 Rbls. (Each person was able to change a maximum of 1,500 Rbls to 150 KR.) Initially, the Estonian kroon was pegged to the Deutsche Mark at a rate of 8 KR = DM 1.[6] After the introduction of the euro the fixed exchange rate of DM 1.95583 to the euro led to an exchange rate of 15.64664 KR to the euro. On 28 June 2004, as Estonia joined the ERM II-system, the central parity of the Estonian kroon was revalued (by less than 0.001%) to 15.6466 KR per euro.[7] On 1 January 2011 the euro replaced the kroon as the official currency of Estonia. The kroon circulated alongside the euro until 15 January 2011 at which point it ceased to be legal tender.[8] However, the Eesti Pank will indefinitely exchange kroon banknotes and coins in any amount into euro.

Banknotes

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In 1992, banknotes were introduced in denominations of 1, 2, 5, 10, 25, 100, and 500 krooni. Some of the 5, 10, 25, 100, and 500 krooni notes were dated 1991. In 1994, a 50 KR note was introduced. Unlike others, the 1 KR and 50 KR notes were issued only once.

Notes in circulation before being replaced by the euro:

Banknotes of Estonia [6]
Image Value Euro
equivalent		 Dimensions
(mm)		 Main color Description Date of
Obverse Reverse Obverse Reverse first printing issue
    1 kroon €0.06 140 × 69 Orange/Brown Kristjan Raud Toompea Castle 1992
    2 krooni €0.13 Grayish blue Karl Ernst von Baer University of Tartu 1992, 2006, 2007
    5 krooni €0.32 Orange Paul Keres Narva castle & Ivangorod fortress 1991, 1992, 1994
    10 krooni €0.64 Red Jakob Hurt Tamme-Lauri oak tree 1991, 1992, 1994, 2006, 2007
    25 krooni €1.60 Green Anton Hansen Tammsaare Vargamäe village 1991, 1992, 2002, 2007
    50 krooni €3.20 Cyan Rudolf Tobias Estonia Theatre 1994
    100 krooni €6.40 Light blue Lydia Koidula Baltic Klint 1991, 1992, 1994, 1999, 2007
    500 krooni €31.96 Purple Carl Robert Jakobson Barn swallow 1991, 1994, 1996, 2000, 2007
These images are to scale at 0.7 pixel per millimetre. For table standards, see the banknote specification table.

Coins

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In 1992, coins were introduced (some dated 1991) in denominations of 5, 10, 20, & 50 senti, as well as 1 KR. The 1 KR was struck in cupronickel, the others in aluminum-bronze. However, in 1997, nickel-plated steel 20 senti were introduced, followed by aluminum-bronze 1 KR in 1998. 5 senti coins were not issued after 1994 but were still legal tender. The cupronickel 1 KR coins from 1992, 1993 and 1995 were demonetized on 31 May 1998 because they were too similar in weight and composition to DM 1 coins, and new 1 KR coins were issued.[9] The 5 KR coins were commemorative pieces and were rarely seen in circulation.

Coins in circulation before being replaced by the euro:[10]

  • 5 senti (1991, 1992, 1995)
  • 10 senti (1991, 1992, 1994, 1996, 1997, 1998, 2002, 2006, 2008)
  • 20 senti (1992, 1996, 1997, 1999, 2003, 2004, 2006, 2008)
  • 50 senti (1992, 2004, 2006, 2007)
  • 1 kroon (1992, 1993, 1995, 1998, 2000, 2001, 2003, 2006, 2008)
  • 5 krooni (1993, 1994).
Image Nominal value Technical parameters
Diameter Weight Edge Composition
  5 senti 15.95 mm 1.29 g plain copper 93%, aluminum 5%, nickel 2%
  10 senti 17.20 mm 1.87 g
  20 senti 18.95 mm 2.27 g
20 senti 18.95 mm 2.00 g nickeled steel
  50 senti 19.50 mm 3 g copper 93%, aluminum 5%, nickel 2%
  1 KR 23.25 mm 5 g jagged copper 89%, aluminum 5%, zinc 5% Sn 1%
  5 KR 26.20 mm 7.1 g

See also

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References

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  1. ^ General principles of the Estonian monetary system Archived 2012-03-16 at the Wayback Machine, Bank of Estonia
  2. ^ "Stages of cash changeover". European Central Bank. Retrieved 2010-05-12.
  3. ^ Ministers offer Estonia entry to eurozone January 1 France24, 8 June 2010
  4. ^ "Estonian Coinage". European Commission. Retrieved 2010-05-13.
  5. ^ Bank of Estonia. "Some facts from the history of Eesti Pank and Estonian finance". Archived from the original on 7 July 2004. Retrieved 13 May 2010.
  6. ^ Bank of Estonia. "History – Eesti Pank 1919–1992". Archived from the original on 2007-06-09. Retrieved 2006-12-30.
  7. ^ "Estonian kroon included in the Exchange Rate Mechanism II (ERM II)" (Press release). ECB. 27 June 2004. Retrieved 2009-11-04.
  8. ^ Stages of the cash changeover ECB: Estonia (2011)
  9. ^ 1995–1999: modernisation and regulation of the banking environment Archived 2021-04-22 at the Wayback Machine Eesti Panga Muuseum
  10. ^ "Estonian coins". Bank of Estonia. Archived from the original on 2005-12-13. Retrieved 2009-11-04.
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Preceded by:
Estonian mark
Reason: independence
Ratio: at par 		Currency of Estonia
1928 – 1940 		Succeeded by:
Soviet ruble
Reason: Soviet Union occupation of the Baltic states
Ratio: 1 ruble = 0.8 kroon
Preceded by:
Soviet ruble
Reason: independence from the Soviet Union
Ratio: at par 		Currency of Estonia
1992 – 2010 		Succeeded by:
Euro
Reason: entry into Eurozone
Ratio: 1 euro = 15.6466 krooni
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