About the Norwegian Krone
The Norwegian krone (plural kroner) is the currency of Norway, issued by Norges Bank. It has floated freely since December 1992. Norway is outside the EU but inside the European Economic Area, so most of its trade is with euro countries and EUR/NOK is the main reference rate.
Oil and gas make up a large share of Norway's exports, so the krone often moves with energy prices. Norway saves its petroleum income in the Government Pension Fund Global, the world's largest sovereign wealth fund, which is invested entirely outside Norway. To move money between the fund and the state budget, Norges Bank buys or sells kroner in the market every day and announces the daily amount at the start of each month.
NOK is a smaller, less liquid currency than the euro or the dollar. In times of market stress it can move sharply, and spreads can widen. Norges Bank targets 2% inflation and holds eight monetary policy meetings a year.
Paying in NOK
- Account number and IBAN
- A Norwegian account number has 11 digits: a 4-digit bank code, a 6-digit account number and a check digit. For payments from abroad, use the IBAN, which starts NO and is 15 characters long, together with the bank's SWIFT/BIC code.
- KID reference
- Norwegian invoices often carry a KID number, a customer reference the recipient's bank uses to match the payment automatically. Quote it exactly, on its own, in the payment reference.
- Domestic clearing
- NOK payments inside Norway clear through the Norwegian interbank clearing system and settle at Norges Bank. Most transfers between Norwegian banks now arrive within seconds.
- NOK is not SEPA
- Norway is in the Single Euro Payments Area, but SEPA covers euro payments only. Sending kroner to a Norwegian account is a NOK payment, not a SEPA transfer.
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