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Where can the Danish krone’s exchange rate save you money on holiday?

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The Local ([email protected])
Where can the Danish krone’s exchange rate save you money on holiday?
The Danish krone currently has a favourable exchange rate against some other European currencies. File photo: Kristian Djurhuus/Ritzau Scanpix

The Danish krone currently has a relatively strong exchange rate with other currencies, meaning people who live in the Nordic country could benefit while on holiday.

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Neighbouring Sweden and Norway, as well as popular holiday destination Türkiye, are among countries whose currencies currently have a favourable rate if you are purchasing them with the Danish krone, broadcaster DR reports.

A fortuitous upside for Danish residents of inflation and high prices of fuel and other goods across Europe is that Denmark is currently in a strong position relative to some other countries, with inflation having fallen considerably in the Nordic country since late last year.

Denmark’s relatively healthy position means that the krone can have a better exchange rate against other foreign countries than it may have done prior to the onset of inflation in 2022.

This does not have an impact when converting from the Danish krone to the Euro, however. This is because Danish monetary policy ensures that the krone follows the Euro’s value.

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For other countries which do not use the Euro – like Sweden, Norway and Türkiye – the Danish krone is currently strong.

READ ALSO: Danes flock to Norway to take advantage of cheap currency

Sweden’s currency, the krona, has fallen in value by around ten percent compare to the Danish krone over the last year, according to DR.

This means it now cost 0.64 Danish kroner to buy 1 krona, compared to 0.71 Danish kroner last year.

Meanwhile, VAT (moms in Danish) on many Swedish-produced items is lower than the Danish VAT rate of 25 percent, giving potential additional savings.

On the flip side, imported items may cost more in Sweden because the weaker Swedish krona has increased import costs for companies.

Inflation is currently higher in Sweden than it is in Denmark but this does not negate that gains to be made from the current exchange rate, according to DR’s report.

Similarly, the “krone vs. krone” exchange between Denmark and Norway currently favours the former country, making it more affordable for Danes to travel to Norway – one of a very small number of countries in the world where prices are usually considerably higher than they are in Denmark.

The Norwegian krone, like the Swedish version, has also seen a dip of around ten percent in value compared to Denmark’s currency.

Currently, 100 Danish kroner is worth around 155 Norwegian kroner. That compares to a September 2022 peak for the Norwegian krone against Denmark’s currency, when 100 Danish kroner cost 122 Norwegian kroner.

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Unlike in Sweden, prices in Norway were high than those in Denmark prior to the exchange rate shift in favour of the Danish krone.

This means that savings on travelling to Norway on the kroner will probably lower than they are in Sweden – but better than they would have been in Norway a year or two ago.

More dramatic than the Scandinavian currencies is the fall in value of Türkiye’s lira, which has plummeted in value and continued to do so after the recent re-election of President Recep Tayyip Erdogan.

Inflation in Türkiye meanwhile far outstripped anything seen in Denmark in the last year, reaching as high as 85 percent in late 2022 while interest rates were cut, rather than raised as has been the case in other countries.

The Anatolian country is a popular holiday choice in Denmark, with many heading to resort areas like Alanya and Antalya, and with Istanbul a great option for a city break.

Because the value of the lira is falling, the exchange rate is also likely to change quickly. This means caution is necessary when exchanging other currencies for the lira. Prices are also far higher because of inflation, so even though a krone may get you many more lira than it did in the past, purchasing power will be tempered by the price increases.

Overall, the cost of a holiday in Türkiye for tourists from Denmark will probably be lower than it was a year or more ago.

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