Euro to SEK | EUR SEK | Live Price Chart

Euro to SEK

The Swedish krona (code: SEK) is the official currency of the Kingdom of Sweden and is one of the currencies used within the European Union. Both the ISO code "SEK" and the currency sign "kr" are commonly utilized for the krona. Typically, the ISO code SEK precedes or follows the value, while the currency sign kr usually follows it; although in the past, it sometimes preceded the value. In English, the currency is often referred to as the Swedish crown, as "krona" translates to "crown" in Swedish. As of April 2016, the Swedish krona was the ninth-most traded currency in the world by value.

Subdivisions and Historical Coins

One krona is subdivided into 100 öre. Historically, coins as small as 1 öre were in circulation, but the last coin smaller than 1 krona was discontinued in 2010. Despite this, goods can still be priced in öre, though cash payments are rounded to the nearest krona. The term "öre" is derived from the Latin word for gold, "aurum."

Euro to SEK Exchange and International Trade

When discussing international currency exchange, understanding the Euro to SEK (EUR SEK) exchange rate is crucial. The EUR SEK exchange rate plays a significant role in global trade and finance, impacting everything from travel expenses to international business transactions. Monitoring the EUR SEK exchange rate helps in making informed financial decisions, whether you are converting Euros to SEK or vice versa.

Importance of the Krona in Global Markets

The Swedish krona’s significance extends beyond Sweden’s borders, influencing various financial markets and international trade agreements. The dynamic exchange rate of Euro to SEK (EUR SEK) is a key factor for businesses and investors dealing with Swedish markets. By staying updated with the EUR SEK exchange rate, one can effectively manage financial strategies and optimize currency exchanges.

The Swedish krona (SEK) is a vital currency in both Sweden and the broader European Union. Understanding its value, subdivisions, and its relationship with the Euro (EUR SEK) can enhance your financial literacy and assist in making informed economic decisions.

History of the Swedish Krona (SEK)

Introduction of the Krona

The introduction of the krona, which replaced the riksdaler at par, was a result of the Scandinavian Monetary Union, established in 1876 and lasting until the onset of World War I. The union included Sweden, Denmark, and Norway, with the currency named "krona" in Sweden and "krone" in Denmark and Norway, meaning "crown" in English. These currencies were on the gold standard, with the krona/krone defined as 1⁄2480 of a kilogram of pure gold.

End of the Monetary Union

The mutual equivalence of these three currencies ended during World War I when their convertibility to gold was suspended. Although their gold parities remained during most of the interwar period, these currencies were generally quoted at varying market rates.

Contemporary Coins

On September 11, 2012, the Riksbank announced a new series of coins to replace the 1-krona and 5-kronor coins, which were introduced in October 2016. The design follows the theme of singer-songwriter Ted Gärdestad's song "Sol, vind och vatten" (Sun, wind, and water), depicting these elements on the reverse side of the coins. This series also reintroduced the 2-kronor coin while retaining the current 10-kronor coin design. A significant reason for the new coin series was to eliminate the use of nickel due to allergy concerns. Nowadays, many vending machines and parking meters have ceased accepting coins, favoring bank cards or mobile phone payments.

Historical Coins

Between 1873 and 1876, various denominations of coins were introduced, including 1, 2, 5, 10, 25, and 50 öre, and 1, 2, 10, and 20 kronor. Initially, the smaller denominations were made of bronze, the medium denominations of silver, and the higher denominations of gold. In 1902, the production of gold coins ceased but briefly restarted in 1920 and 1925 before stopping entirely.

World War I and World War II led to significant changes in coin materials due to metal shortages, including the use of iron and nickel-bronze. By 1962, cupronickel replaced silver in many coins. The 2-kronor coin, which contained 40% silver until 1966, became rare due to its melt value exceeding face value.

Cash Rounding

Cash rounding, commonly called Swedish rounding, is a legally enforced method of rounding off change to the nearest unit of physical currency while retaining the öre for pricing and accounting. This practice began in 1971 when 1- and 2-öre coins were phased out, with subsequent phases eliminating 5-, 25-, 10-, and 50-öre coins by 2010.

In 1991, aluminum-brass ("Nordic gold") 10-kronor coins were introduced, replacing older 10-kronor coins. In the same year, bronze-colored 50-öre coins were introduced.

On December 18, 2008, the Riksbank proposed phasing out the 50-öre coin by 2010 due to its low purchasing power and higher production costs. The Riksdag formalized this decision on March 25, 2009, making the final date for payments with 50-öre coins September 30, 2010.

Coin Series and Legal Tender

After launching the current coin series in 2016, all old kronor coins became invalid in 2017. They cannot be used for payments or exchanged for legal tender at any bank and are instead recycled as metal. Jubilee and commemorative coins minted since 1897 remain legal tender.

Euro to SEK Exchange (EUR SEK)

The relationship between the Euro to SEK (EUR SEK) exchange rate plays a critical role in Sweden's financial landscape. Monitoring the EUR SEK exchange rate helps businesses, investors, and travelers make informed decisions regarding currency conversion and international transactions. Understanding the historical context and contemporary use of the Swedish krona (SEK) enriches one's knowledge of global finance and the nuances of the EUR SEK exchange rate.

Exchange Rate of the Swedish Krona (SEK)

The exchange rate of the Swedish krona (SEK) against other currencies has historically been influenced by Sweden's monetary policy. Since the Swedish banking rescue, a managed float regimen has been maintained. To understand where the Swedish krona ranks among the most traded currencies, one can refer to articles on the foreign exchange market.

Euro to SEK (EUR SEK) Exchange Rate

The Euro to SEK (EUR SEK) exchange rate has seen significant fluctuations over the years. The weakest point for the krona against the euro was on March 6, 2009, when one euro bought 11.6465 SEK. Conversely, the strongest the krona has been relative to the euro was on August 13, 2012, when one euro bought 8.2065 SEK. This fluctuation was largely due to the financial crisis in Greece, which began in July 2012, and fears of its spread to Italy and Spain. The average exchange rate from the beginning of 2002, when the euro banknotes and coins were issued, until March 1, 2017, was 9.2884 SEK per euro.

Relationship to the Euro

Sweden and the Euro

According to the 1994 accession treaty effective January 1, 1995, Sweden is required to join the eurozone and adopt the euro once the convergence criteria are met. However, on September 14, 2003, a Swedish referendum showed that 56% of voters opposed adopting the euro, with an overall turnout of 82.6%. The Swedish government has argued that one requirement for eurozone membership is a two-year membership in the ERM II exchange rate mechanism. By not joining the ERM II, Sweden has avoided the formal requirement to adopt the euro.

While some major Swedish parties believe it would be beneficial to join the euro, all parties have pledged to respect the referendum results, and there has been little interest in revisiting the issue. In a 2007 poll, 33.3% were in favor of joining the euro, while 53.8% were against, and 13.0% were uncertain. In February 2009, Prime Minister Fredrik Reinfeldt stated that a new referendum would only be held if there was clear support from the people and major parties. As of 2014, support for joining the euro among the Swedish population remains low, with a September 2013 poll showing support as low as 9%. The only party in the Riksdag supporting euro entry as of 2015 is the Liberal Party.

The E-Krona

The e-krona is a proposed electronic currency to be issued directly by the Riksbank. Unlike electronic transfers using commercial bank money, central bank money like the e-krona has no nominal credit risk, as it represents a claim on the central bank, which cannot go bankrupt for debts in Swedish krona.

The declining use of cash in Sweden is expected to reinforce the need for digital solutions like the e-krona. As more businesses operate without accepting cash, the demand for digital payment methods such as the Swish app, already used by half the population, increases. Cash machines, controlled by a Swedish bank consortium, are being dismantled, particularly in rural areas.

The Riksbank has not yet decided to issue the e-krona. First, it needs to investigate several technical, legal, and practical issues. Deputy Governor Cecilia Skingsley noted that the declining use of cash in Sweden makes this a pressing issue. If the Riksbank chooses to issue the e-krona, it will complement cash, not replace it. The Riksbank will continue issuing banknotes and coins as long as there is demand.

In December 2020, Sweden's Minister for Financial Markets, Per Bolund, announced a government review to explore the feasibility of moving to a digital currency, expected to be completed by the end of November 2022. Anna Kinberg Batra, a former chairwoman of the Riksbank's finance committee, was appointed to lead the review. As of 2023, no final decision has been made.