Economics

What is the Currency of Finland?

The official currency of Finland is the euro.

Description

The official currency used in Finland is the euro. Originally, Finland used the Finnish markka as its legal tender which was abbreviated as MK and had the currency code of FIM. After undergoing a transition period from 1999 to 2002, the euro became the official legal tender in 2002. The double legal tender system of the markka and the euro ended on February 28, 2002.

Finnish Currency History

The National Bank of Finland introduced the Finnish markka in 1860 which brought about the replacement of the first Russian ruble at a rate of one ruble per four Finnish markka. In 1865, the Finnish markka was tied to silver and separated from the Russian ruble. The Latin Monetary Union Gold Standard valuation system was adopted by the Finnish government in 1878-1915 and during World War I the markka fluctuated unevenly. The inflation rate ranged between -16 and +23. After the country gained its independence in 1917, the gold standard system was reinstated in the nation.

Finnish Euro Coins

The Finnish euro coins have three designs, the Heikki Haivaoja design adopted by the one cent and 50 cent coins, the Ramao Heino designed two euro coin, and the Perti Makinen designed 1 euro coin. The Goldenberry of northern Finland is printed on a two euro coin.

Finnish Euro Design

The minting process of the first set of Finnish euros began in 1999. Although the minting of the coins began earlier to prepare for the transition process, the introduction of the coins did not come until 2002. However, the coins are dated 1999. All of the euros minted between 1999 and 2006 have the inscription "M" on them, an abbreviation of the country's minting master Raimo Makomen. In December 2006, the National Bank decided to amend the rules on currency minting. The new rule allowed all member states that issued the currency to add the nation's name on the coins. For Finland, the name was abbreviated as FI. Finland became the first country in the European Monetary Union to make the improvements on the currency.

Bank Notes

The first Finnish markka notes were designed and issued in 1980 and 1986 respectively. A 20 markka note had an image of Vainio Lina fraudulently; the bank had not received the copyrights from the owners. The fraud was discovered later after several million notes were in circulation. The second series of markka notes came into use in 1955 and were revised in 1965. Topia Wirkkala designed the new bill.

Euros

Finland is among the members of the euro zone, where the euro is the currency used. The euro's first series was introduced in 2002 and has been in circulation ever since. Unlike euro coins, euro notes have the same design across the euro zone. Its denominations are in 5, 10, 20, 50, 100, 200, and 500. They are made of pure cotton fiber to increase its durability and to give the note a distinct texture.

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