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What does Danmarks Nationalbank do?

The role of the Danish central bank.

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Short answer

Danmarks Nationalbank is the central bank of Denmark and has three main objectives: stable prices, safe and efficient payments and a stable financial system. It keeps the value of the krone stable against the euro through the fixed exchange rate policy and uses its interest rates to do so. It issues Danish banknotes and coins, oversees the most important payment and settlement systems and chairs the Danish Payments Council. Its objectives and its independence from the political system rest on the Danmarks Nationalbank Act of 1936.

Practical info

Why

  1. It sets the Danish monetary policy interest rates.
  2. It issues banknotes and coins.
  3. It works to make the financial sector able to withstand crises.

Details

Danmarks Nationalbank takes part in TARGET Services, the payment infrastructure run by the European Central Bank, with Danish kroner.

Tip

Rate decisions and monthly figures are published as press releases on nationalbanken.dk, in Danish and English.

What may differ

The tasks of the central bank can be adjusted over time, while the law from 1936 still sets the frame.

Common misconception

The Danish central bank sets its own inflation target and lets the krone float.

What actually happens

It keeps the krone fixed to the euro and aims for the same low, stable inflation as the euro area.

People also ask

  • What is the Danish central bank interest rate now?
  • Is the Danish krone pegged to the euro?
  • How big are Denmark's gold reserves?

Sources

This answer is for reference only. Payment rules, limits and fees change, so check the official sources or your bank before you pay.

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