20 Kroner (Niels Henrik Abel) – Norway

In 2002, Norway's currency situation was fundamentally defined by its unique monetary policy framework. The country operated a flexible exchange rate regime for the Norwegian krone (NOK), but with a clear inflation-targeting mandate established by Norges Bank, the central bank. The primary objective was to maintain low and stable inflation, with an explicit target of 2.5% annual consumer price growth. This framework provided stability and predictability, distinguishing Norway from many European neighbours who had adopted the euro two years prior following a national referendum where Norwegians voted against EU membership for a second time.

The krone's value in 2002 was significantly influenced by high global oil prices and substantial petroleum revenues, which were being prudently managed through the Government Pension Fund Global (the oil fund). These inflows generally exerted upward pressure on the currency. However, Norges Bank faced a complex balancing act: it had to manage inflationary pressures from a strong domestic economy and high household debt levels while also considering the potential negative impact of an excessively strong krone on the non-oil export sector. Interest rates were the primary tool for this, and the key policy rate was set at 7.0% for much of the year before being cautiously lowered to 6.5% in December as global economic uncertainty persisted.

Overall, the Norwegian krone in 2002 was a stable, freely floating currency backed by robust macroeconomic fundamentals and a transparent central bank policy. Its strength was underpinned by the nation's substantial oil wealth and fiscal discipline, insulating it from the economic turbulence affecting many other regions. The monetary policy focus remained firmly on domestic inflation control, successfully navigating the challenges posed by the commodity-driven economy without the constraints of a fixed exchange rate or a shared currency like the euro.