Greenland will continue to use the Danish krone as its currency after the ruling government declined to adopt the National Bank’s new printed notes. Speaking in the latest parliamentary session Juliane Henningsen, political spokeswoman for the Innuit Ataqatigiit Party has said that the government will introduce a proposal to clarify its position on the currency debate.
Henningsen claimed that the decision was made based on what was determined to be the most useful for the country, suggesting that the National Bank’s new notes were essentially for decoration, SIKUnews reports. Henningsen added that given the notes are not able to be used outside of Greenland, they will only present difficulty.
In 2008 a proposal by the then government made it possible for Greenland to begin producing its own banknotes, a move which was welcomed by the previous premier Hans Enoksen. However, since that time the release of the new currency has been repeatedly delayed and the new banknotes complete with iconic Greenlandic imagery will not be seen until 2011 at the earliest.
Parliamentary debate on the issue was limited as the autumn session opened. The Greenland debating mandate states that only 30 minutes is allowed for members to discuss any proposals put forward by spokespersons, and that each question and answer may not be greater than two minutes. However, Tuesday’s session saw Henningsen remain on the platform for over two hours as the debate continued.
Thanks for the insight, Runestone. I’ve never been to Greenland but, somehow I just have to believe that such a huge island must have all kinds of potential just waiting to be utilized in a beneficial and responsible way.
Lovely idea Jim; but no two towns in Greenland are even connected by roads yet. And it’s not just lack of money or investment. The terrain is simply too difficult (at least until masses of the ice melts). Even the ice free areas are perilously mountainous and/or cliffy.
Also, the tiny population and massive distances would surely make Greenlandic highways or railroads the most expensive in the world per capita per kilometre.
No offence intended Jim…I am sincere when I say it’s a lovely idea :-)
I’d like to see Greenland with its own debt-free multi-metal commodity currency. Gold, silver, and copper coins issued by the Greenland government and firmly pegged to the Danish krone. Nuuk must make it law that the money is public, debt-free, and will never be issued by private banks.
The intrinsic value of the gold and silver coins will make it less vulnerable to foreign banker manipulation. Guaranteed convertibility to the krone will also give it stability. This proposed new Greenland money should be kept within the Greenland domestic economy. If money has to go out, by law it should be converted to krone first. Again, to protect and mitigate against the natural malevolence of foreign bankers, derivative jobbers, and New York/London currency traders.
Given the global shortage of clean water, Greenland could sell or barter its ice to countries in need of the water. Greenland will need a reliable and rugged rail system for that purpose. Ice for railroads would be a great start! Debt-free money and a railroad system would set the stage for Greenland to become a viable nation with great potential.
It was supposed to be a local reprint of the Danish krone, just like the Faroes have currently. Greenland does NOT use the Euro.
But now they will apparently continue to use the Danish notes, just like they have been doing the last 40 years.
[…] full story–> Fredrik […]
Exports – partners: Denmark 64.4%, Japan 11.2%, Canada 4.9%, China 4.1% (2008)
Imports – partners: Denmark 59%, Sweden 20.8%, Norway 4.6%, UK 4.4% (2008)
Exports : 480mill 2006
Imports: 702mill 2006
Exports commodities: fish and fish products 94% (prawns 63%) (2001 est.)
Imports commodities: machinery and transport equipment, manufactured goods, food, petroleum products.
Economy overview:
The economy remains critically dependent on exports of shrimp and fish and on a substantial subsidy – about $700 million in 2008-09 – from the Danish Government, which supplies about 60% of government revenues. The public sector, including publicly-owned enterprises and the municipalities, plays the dominant role in the economy. Several interesting hydrocarbon and mineral exploration activities are ongoing and in 2007 a US firm signed an agreement with the Greenland Home Rule government to study the feasibility of building a multi-billion dollar aluminum smelter and hydropower plant. Denmark plans to reduce its subsidies to Greenland as revenues from oil exports come onstream.
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Fishing and hunting continues to be a dominating sector in Greenland. All kinds of fishes, ranging from shrimps to cod, are found in Greenland. Fishing exports account for a large share of Greenland’s income.
Tourism sector is the next best contributor to Greenland’s economy.
In 2006, an estimated $480 million worth of commodities were exported from Greenland. Ninety-four percent of Greenland’s total exports included fish products. Major export partners of Greenland included countries like Denmark, Japan, Canada and China. Denmark accounted for 62.2 percent of Greenland’s exports.
Weaknesses
Greenland’s economy continues to be heavily dependent on the fishing industry. Nearly half of Greenland’s revenues come from Danish Government’s support. Tourism sector is affected by short seasons. High costs also that affect tourism in Greenland.
Future of Greenland
Future of Greenland depends on how air transportation and telecommunications can be improved. Less dependence on fishing industry can also help in modernizing Greenland. Tourism sector, though faced by numerous challenges, can lead to better economic prospects for Greenland.
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External Trade 2007:
Exports: €315mill. ( exports from Denmark, 86,1% ).
Imports: €468mill. ( imports from Denmark, 58.2% ).
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National currency the Canadian dollar, and, exports only 4.9% in 2008 ?????????
I’d suggest Greenland to adopt the Euro; that is, its present currency!
“since Greenland is in North America, it will not be eligible to EU and euro membership once it becomes independent”
There are, officially, several countries outside Europe that use the Euro, in the Caribbean, North America, Africa and in the Pacific.
Reunion is in the Indian ocean, but it is considered a part of France (a department) and it too uses the Euro, as do the other overseas departments.
If it is a local reprint of the Danish krone, it could be a beautiful idea! Similar to Faeroe. I like … I am a collector!
If it is ( will be ) a new national currency, then they have not learnt the icelandic lesson.
Anyway, national currency in Greenland, today, is the Euro.
http://www.nationalbanken.dk/DNUK/NotesAndCoins.nsf/side/Greenland_to_have_banknotes_with_its_own_motif!OpenDocument
Even Faroes reprint Danish’s change (aka: not banknotes). Anyway, I’d agree with O.L., I’d suggest Greenland to adopt Canadian $ ;)
If a country like Iceland (300 000 inh.) has difficulty with its own currency, just imagine Greenland (50 000 inh.). Although I personally favour Greenland’s independence, I think a national currency would not be in their best economic interests. On the other hand, since Greenland is in North America, it will not be eligible to EU and euro membership once it becomes independent. Therefore, the Canadian or US dollar, along with NAFTA membership, would be the wisest choice.
Is this really a new national currency or just a local reprint of the Danish krone? Similar to the Scotland’s local reprint of English bank notes…