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The introduction of the krone as the legal tender in Norway, 1875 was a result of the Scandinavian Monetary Union, which lasted until the First World War. The parties to the monetary union was the Scandinavian countries of Sweden and Denmark from the start in 1873, with Norway joining two years later.
The name of the currency was Krone in Denmark and Norway, and Krona in Sweden, which in English literally means Crown. After dissolution of the monetary union Denmark, Norway and Sweden all decided to keep the name of their respective and now separate currencies.
In 2002 the Norwegian krone kept growing stronger and stronger to record high levels compared to the dollar and the Euro. On January 2, 2002, one United States dollar was worth close to 9 Norwegian kroner. In July 2002, the United States dollar hit a low at 7.3 kroner. In addition to the high level of interest, which increased further on July 04, 2002 to 7.0 per cent, the oil price was another reason for the soaring krone. Norway was the world's third biggest oil exporter, and the ever-increasing demand for oil and gas had driven the price up, especially for the first six months of 2002.