20 Kroner – Denmark

In 2004, Denmark's currency situation was defined by its long-standing and politically deliberate participation in the European Exchange Rate Mechanism II (ERM II). Having rejected the adoption of the euro in a 2000 referendum, the Danish krone (DKK) was nonetheless pegged to the euro within a narrow band of ±2.25%. This arrangement, managed by the independent Danmarks Nationalbank, required the central bank to intervene in foreign exchange markets to maintain the fixed exchange rate, effectively shadowing the interest rate decisions of the European Central Bank to ensure currency stability.

The system functioned smoothly throughout 2004, providing the small, open Danish economy with the exchange rate stability crucial for its trade with the Eurozone, its largest trading partner. This stability was a key economic priority, outweighing the potential monetary policy autonomy sacrificed by the fixed peg. Domestically, the political debate about eventually joining the euro remained subdued, as the post-referendum "national compromise" had settled on the current arrangement, which delivered the benefits of euro stability without formal adoption.

Therefore, the 2004 currency landscape was one of successful and uneventful maintenance. The krone-euro peg was a cornerstone of economic policy, operating as a technical success for the central bank while the broader political question of full euro membership was intentionally placed on hold. This period represented a stable equilibrium, allowing Denmark to enjoy integrated European trade while retaining its distinctive national currency.