Swedish riksdaler
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The riksdaler was the name of the currency of Sweden until 1873 when it was replaced by the krona as a result of the Scandinavian Monetary Union. The daler, like the dollar, was named after the German thaler. The similarly named Reichsthaler, rijksdaalder and rigsdaler were used in Germany and Austria-Hungary, the Netherlands, and Denmark-Norway, respectively.
The daler was the most common currency in Sweden from the early 17th century. Each daler was divided into 4 mark, each of 8 öre, whilst the öre was divided into 24 penningar (singular penning). During the Thirty Years' War, daler were issued in both copper and silver. As silver became scarce, the silver daler rose in value relative to the copper daler, with the exchange rate between the two eventually stabilizing at a ratio of 3 to 1. Later, the riksdaler ("daler of the realm") was introduced at a value of three silver daler (nine copper daler). Coins were issued showing values in both silver money (S.M.) and copper money (K.M.).
In 1776 the old currency was exchanged for a new national currency based on the riksdaler. One riksdaler was equal to 48 skillingar (worth two old öre, singular skilling) and each skilling was divided into 16 runstycken. The riksdaler was issued both in banknotes (fiat money) and silver coin. At first, only the Riksens Ständers Wexel-Banco (the Bank of the Riksdag of the Estates) could issue banknotes but, in 1789, the Riksgäldskontoret (Swedish National Debt Office) was established and given the right to issue its own banknotes. The riksdaler specie was minted in silver, the riksdaler banco was issued by the Bank and the riksdaler riksgälds was issued by the Debt Office.
The riksdaler specie was protected against inflation through its connection to silver but the banknotes suffered heavily from a seigniorage induced inflation. In 1834, the exchange rates were fixed at 1 riksdaler specie = 2⅔ riksdaler banco = 4 riksdaler riksgälds. The Riksens Ständers Wexel-Banco also issued copper coins, whose value had fallen (relative to silver) in line with the bank's paper money. There were therefore 128 bank skillingar to the riksdaler specie and these became the new standard subdivision of the riksdaler specie in 1834, carrying the name skilling banco.
In 1855 two reforms took place, the introduction of the riksdaler riksmynt and the change to a decimal system. One riksdaler specie was equal to 4 riksdaler riksmynt, each of which was divided into 100 öre. The Scandinavian Monetary Union replaced the riksdaler riksmynt in 1873 with a new currency, the krona, at par. This currency was also adopted in Denmark and Norway.
The word riksdaler is still occasionally used as slang for kronor in Sweden.
