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Which currencies have benefitted the most from Norway’s weak krone?

The Norwegian krone has slumped against several major currencies in recent years. But which currency has seen the largest gains, and what can you get for your money compared to five years ago?

Published: 16 April 2024 14:48 CEST
Pictured is a bundle of different currencies.
Norway's krone has slumped against a number of other currencies. Pictured is a bundle of different currencies. Photo by Ibrahim Boran on Unsplash

Norway’s krone has endured a turbulent few years, hitting major lows in 2020 and then fluctuating and returning to similar levels this year and 2024.

The decline in the krone has been linked to several factors, and it looks like the weaker currency is now the new norm.

The real losers in this situation are those living in Norway and those paid in the Norwegian krone.

This is because they suffer something of a ‘double whammy’, whereby the weak krone makes it more expensive to travel, but the weak krone also drives up inflation due to imports becoming more expensive.

Still, the good news is that visitors to Norway, those who are paid in another currency, and people with savings pots abroad are better off.

READ ALSO: How the weak Norwegian krone will affect travel to and from Norway

For example, five years ago 1,000 kroner was equivalent to around 117 dollars, according to historical exchange rate calculators whereas these days 1,000 kroner trades for around 91 dollars.

Due to inflation, 1,000 kroner in 2019 is equivalent to 1,200 kroner in 2024, and 117 dollars is equivalent to 144 dollars. Today, 1,200 kroner trades for around 110 dollars.

When it comes to the euro, you can expect around 86 euros in exchange for 1,000 kroner at current rates.

Similarly, 1,000 kroner was equivalent to 104 euros in 2019. After inflation is accounted for, 104 euros in 2019 equals around 124 euros in 2024. Meanwhile, 1,200 kroner in April 2024 could be exchanged for 103 euros.

Five years ago, you could swap 1,000 kroner for just under 90 British pounds. These days 1,000 kroner only gets you 73 pounds. Inflation means that 90 pounds in 2019 equates to around 110 in today’s money.

When adjusting 1,000 kroner for inflation, 1,200 kroner is equivalent to 88 pounds in today’s money.

These examples highlight how, even after accounting for inflation, Norway’s kroner has weakened against several other currencies.

In 2019, 1,000 kroner was equivalent to 156 Canadian dollars. These days, 1,000 kroner trades for around 125 Canadian dollars.

Five years ago, 1,000 kroner was traded for 164 Australian dollars and 174 New Zealand dollars. In April 2024, 1,000 kroner could be exchanged for 141 Australian dollars and 154 New Zealand dollars.

Norway’s krone has also slipped against currencies in neighbouring countries. Five years ago, the Norwegian krone was more valuable than the Swedish krone. At the time, 1,000 Norwegian kroner could be exchanged for 1,089 Swedish krona.

Fast forward to this year, and 1,000 Norwegian kroner only gets you around 994 Swedish krona.

The Danish kroner has also strengthened against the krone. In 2019, 1,000 Norwegian kroner would get you 777 Danish kroner, compared to 641 Danish kroner today.

Below is a table comparing the amount 1,000 Norwegian kroner could be exchanged for

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MONEY

EXPLAINED: How wealthy is the ‘average’ Norwegian? 

Norway is known for its high wages and stable economy. New figures have revealed the wealth of the average resident in the Nordic country. 

Published: 23 April 2024 15:50 CEST
EXPLAINED: How wealthy is the 'average' Norwegian? 

High salaries go hand in hand with the high cost of living in conversations about Norway.

However, other factors, such as high homeownership rates, indicate that there is plenty of disposable income for locals to save and invest in their futures. 

Previous studies have also suggested that Norwegians are the seventh wealthiest nationals in the world. 

Norway’s national data agency, Statistics Norway, has compiled its own set of figures indicating that the average Norwegian household has a net wealth of around 3.8 million kroner. 

Net wealth accounts for everything a person owns, including property, stocks, or cash, minus any debts or liabilities. 

The vast majority of this wealth was derived from the estimated value of property. This alone gives the average Norwegian an estimated wealth of 3.74 million kroner. 

READ ALSO: How much does an apartment in Norway cost?

The value of second homes was included, which skewed things as only around 10 percent of households owned a secondary residence. 

The average price of a home in Norway was 4.5 million kroner in March of this year, and house prices have increased substantially in recent years. 

Savings, cash, stocks and other capital accounted for 1.72 million kroner, giving Norwegians an average wealth of 5.46 million kroner. Average debts of 1.68 million kroner gave Norwegians an average net wealth of 3.8 million kroner.  

The figures from Statistics Norway were obtained using figures from tax returns for 2022, which were submitted in 2023.  

Those aged between 67 and 79 years old were the wealthiest generation in Norway on average. This is partly because they have more capital than most other groups and more expensive property. 

However, the most significant factor is the lower levels of debt. They had half the debt of the next richest group, those aged between 55 and 69. 

Younger age groups weren’t as wealthier as they had much higher debts and lower capital. 

Still, Norway’s wealthiest individuals significantly boosted the average. When using the median, the average Norwegian household had a net wealth of just under 2 million kroner. 

When the median was applied to capital, the figure was 339,300 kroner compared to the average of 1.76 million kroner. 

The large difference in capital was attributed to Norway’s wealthiest individuals significantly pulling up the average. 

“This is mainly due to large fortunes in shares and securities, where a few own very much. Shares and other securities and share savings accounts are assets with a median value equal to zero, which indicates that these are not important asset items for most households,” the report said. 

Money kept in the bank was still important for most residents of Norway, though. The median value of bank deposits in Norway was 215,000 kroner, compared to the average of 600,000. 

The gulf between the average value of property owned and the median was roughly 500,000, with the median being 3.25 million kroner. 

Furthermore, Norway’s median debt level was around 860,000 kroner compared to the average of 1.67 million kroner. Around 85 percent of Norwegian households were in some form of debt. 

Significant differences also exist between Norway’s wealthiest and poorest residents. Residents belonging to the country’s poorest ten percent had an average net wealth of almost minus 1 million kroner. 

Meanwhile, Norway’s wealthiest ten percent had a net wealth of 19 million kroner. The top 50 percent also owned considerably more than the bottom 50 percent. 

“Despite the former comprising 1.27 million households, while the latter comprises approximately 25,000 households, the bottom 50 percent own only 4 percent of the total net worth, while the top 1 percent owned as much as 22.3 percent in 2022,” the report read. 

There was also significant variation in wealth depending on household type. For example, a single mother or father with a child aged between 6 and 17 had a net wealth of 2.24 million kroner, compared to a couple with children of the same age with an average net wealth of 5.12 million kroner. 

Typically, households with more than one person had more money as more than one wage earner likely lived at the address. 

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