Foreign Exchange Guide to Norway
In this guide we review :
- Norwegian krone info - general info about the Norwegian krone
- Norwegian krone in the markets - recent NOK moves and predictions from the FX markets
- Travelling in Norway - currency & money saving tips
- Buying Norwegian krone cash online - travel money for Norway
- Sending money to Norway - save on Norwegian krone bank transfers to Norway
- Norwegian krone exchange rates - latest info & charts.
Norwegian krone (NOK) general currency information
In 2016, the Norwegian krone contributed to 1.7% of total foreign exchange market volume, and as such was the world's fourteenth most traded currency. The krone is subdivided into 100 øre and was introduced in the late nineteenth century.
Norway’s economy, and consequently the value of the krone, is heavily reliant on oil and gas prices since nearly half of the country’s total exports are these commodities. The krone is therefore aptly termed a ‘petro-currency’. As of 2016, Norway was the world’s tenth largest oil exporter.
Since 1995, the krone’s lowest valuation against the US dollar came in October 2000 when USD/NOK reached 9.65. The currency was strongest in April 2008 when USD/NOK fell to just 4.94 following a boom in the oil price. Against the euro, since the single currency's introduction in 1999, EUR/NOK has traded between 7.21 and 10.16.
Norwegian krone (NOK) in the markets
The krone was impressive in the final weeks of 2017 and throughout the first half of January 2018 as it piggybacked off an unrelenting rally in the price of oil. With oil and gas products making up nearly half of Norway’s total exports, the krone is highly sensitive to gyrations in these commodities’ prices. As oil futures climbed to three-year highs above $64 per barrel and amid widespread dollar selling, the krone was able to appreciate by mid-January to its strongest level in thirteen weeks, at Kr.7.908 per dollar. Within the same period, the krone was also higher against the euro, at Kr.9.6512 per euro.
FX analysts surveyed by Bloomberg in January believed that the krone would be one of the top performers of 2018, with an anticipated 4% appreciation against the euro by year-end. Although, it should be said that 2017’s most accurate krone forecaster – Bayerische Landesbank – was among the most bearish for 2018 with its prediction that the krone would marginally lose value in the coming year.
In 2017, despite gaining more than 5% against the dollar, the krone was not among the top performing G10 currencies. Against the euro and British pound, the krone lost 7.5% and 3.8% respectively.
Norway currency and money saving tips
The Norwegian currency is “Kroner”, which is sometimes mistranslated into “crowns” in English. Although debit or credit cards are accepted most places, it is still a good idea to have a bit of cash on you. Foreign currency is rarely accepted, so you need Norwegian currency to get by. You will find cash machines everywhere in towns and cities, and in most rural areas there will be at least one place where you can withdraw money, such as a kiosk or a petrol station. Visa and MasterCard are the most commonly accepted credit cards, with far fewer accepting Amex or Diners
Norway has less than 5 million inhabitants, but it is a large country and sparsely populated. Foreign visitors usually underestimate distances and traveling time. Travel along the coast, fjords and mountains is complex, and public transport is often limited to one bus a day. Due to this seeing all of Norway will take more than a few days. Health standards are very high and visitors generally don't have to worry about personal security. Tap water is not only drinkable but usually of very high quality. Norway is full of great places to visit, while going to the North you can go to Ålesund, Trondheim, Lofoten Islands, even North Cape at the Northernmost tip. You can even visit Svalbard near North Pole which is a quite demanding trip though. Be sure to get out into the countryside, it is gorgeous and rugged. The midnight sun is a nice experience, and can be seen anywhere North of Bodø around mid summer. About half of Norway lies above the arctic circle. There is absolutely no need to go to North Cape to experience the midnight sun.
Norway is one of the richest countries in the world and many things are accordingly expensive. Note that service and taxes (VAT) is always included in the price offered, nothing is added to the bill. Air transport is relatively cheap if the traveller are flexible with regard to time and date.
Norway Trip Checklist
Travel money for Norway
Save money and time by Ordering your Norwegian krone online from Travelex, you get better rates and can pick up the NOK cash locally or even on travel day at the airport.
Another popular option is to use a Pre-paid Travel Card. Your Debit/Credit Card provider will charge you 2% from market mid-rate, but your bank may also charge an extra 3% as an “Overseas Transaction Charge” plus “Overseas ATM” fees for withdrawing cash.
For card purchases if offered a choice of currencies always select to Pay in Norwegian krone otherwise you may get much worst exchange rates.
Sending money to Norway
When sending money to Norway it’s important to compare your bank’s rates & fees with those we have negotiated with our partner money transfer providers. To get a better deal you should follow these 3 simple steps :
- Open an account with a BER reviewed FX provider (id docs may be required)
- You specify the local or Norwegian krone amount you want to transfer
- Make a local currency domestic transfer for the requested amount to the provider's bank account in your country
- Once your funds are received by the provider the converted NOK amount will be transfered to the recipient account you specify in Norway.
By comparing the rates of FX specialist providers rates versus your bank's standard rates you can hopefully save around 5% and maybe more - end result is more Norwegian krone deposited into the recipient bank account in Norway and less margins and fees kept by the banks!