Managing different currencies adds some complexity to operations spanning the four largest Nordic economies, which are similar in business, legal and sociopolitical aspects. However, foreign exchange (FX) risk is lessened due to Finland’s use of the euro and the Danish krone’s close peg to the common currency.
The Danish currency keeps within an exchange rate band agreed by the country’s central bank, Danmarks Nationalbank, and the European Central Bank (ECB), and is the cornerstone of the country’s economic policy. “The central bank keeps a tight rein on the krone and will intervene if it gets too strong or weak,” says Jørn Sodborg, director, head of e-business and distribution at Jyske Bank.