20 Kroner (Norwegian Trekking Association) – Norway

In 2018, Norway's currency situation was primarily characterized by the performance of the Norwegian krone (NOK), which experienced significant depreciation against major currencies like the US dollar and the euro throughout the year. The krone fell to its weakest level in over 16 years against the euro and a nine-year low against the dollar. This decline was largely driven by two interconnected factors: a cautious and dovish interest rate policy from Norges Bank (the central bank) and volatile, but generally lower, global oil prices. As a petro-currency, the krone is highly sensitive to oil market sentiment, and uncertainty in the market weighed heavily on its value.

Domestically, Norges Bank was navigating a delicate economic balance. While the broader Norwegian economy was strong with low unemployment, inflationary pressures remained subdued and household debt levels were high. This led the central bank to raise its key policy interest rate only once in September 2018—the first hike in seven years—and signal a very gradual tightening path. This measured approach, especially when compared to more aggressive tightening by the US Federal Reserve, reduced the krone's yield appeal for international investors, contributing to its weakness. The weak krone provided a boost to Norway's substantial non-oil export sectors, such as seafood and tourism, but also increased import costs and the price of foreign travel for Norwegians.

Overall, the 2018 currency landscape reflected Norway's ongoing adjustment in the post-2014 oil price shock era. The krone's depreciation was seen by many analysts as a structural recalibration rather than a purely cyclical event, influenced by a persistent risk premium assigned by global markets due to Norway's economic reliance on hydrocarbons. The situation underscored the challenges for monetary policy in an oil-dependent economy, tasked with managing inflation, financial stability, and external competitiveness simultaneously.