20 Kroner (Queen Margrethe II and Prince Henrik) – Denmark

In 2017, Denmark maintained its long-standing and stable currency regime, with the Danish krone (DKK) pegged to the euro through the European Exchange Rate Mechanism II (ERM II). This fixed exchange rate policy, managed by Danmarks Nationalbank, had been a cornerstone of Danish economic policy for decades, aimed at ensuring monetary stability and low inflation. The central bank stood ready to intervene in foreign exchange markets and adjust interest rates to keep the krone within its narrow band of 2.25% around the central rate of 7.46038 kroner per euro, a commitment that required occasional action in previous years but saw relative calm in 2017.

The year was characterized by a lack of speculative pressure on the krone, a contrast to the significant interventions needed during the 2015 Swiss franc shock. Denmark's key policy interest rates remained negative throughout the year, with the certificate of deposit rate at -0.65%, aligning with the European Central Bank's accommodative stance to maintain the peg. This environment of monetary policy alignment with the Eurozone, coupled with a strong Danish economy and healthy foreign exchange reserves, meant the currency peg was not a subject of political or market concern.

Domestically, there was no serious political movement to adopt the euro or abandon the peg, as the arrangement enjoyed broad support for the stability it provided. The Danish economy performed well in 2017, with robust growth and declining unemployment, further underpinning confidence in the krone. Consequently, the currency situation was largely perceived as a technical success story of a small, open economy successfully maintaining a fixed exchange rate, operating smoothly in the background without the turbulence seen earlier in the decade.