The Treasurer’s Guide to Trade Finance

Denmark

Economic and trade overview

Key figures

Economy 2011 Trade 2011 (USD billion)

GDP (USD) 332 bn Goods Exports 111

GDP per capita (USD) 59,605 Imports 100

GDP volume growth (year-on-year) + 0.8% Net + 10

Population 5.57m Services Exports 67

MMR 1.06% Imports 59

Exchange rate DKK / USD (year average) 5.369 Net + 8

BoP (goods, services & income) as % of GDP + 7.5% Source: IFS, IMF, January 2013

International/Regional memberships

European Union (EU): since 1 January 1973.
Denmark is also a member of the European
Economic Area (EEA).

International Monetary Fund (IMF):
since 30 March 1946.

World Trade Organization (WTO):
since 1 January 1995.

Government trade policy

ƒ Denmark implements the EU’s trade
regulations, commercial policies and
customs code (ec.europa.eu/trade).

ƒ Denmark trades freely with its fellow EEA

member states as well as Switzerland.

ƒ The EU has in place bilateral trade

agreements with 36 countries and regional

trade agreements with a number of trading

blocs.

ƒ National export credit insurance provider:

Eksport Kredit Fonden (EKF — http://www.ekf.dk).

ƒ EKF also operates Denmark’s state-

supported export credit programmes.

ƒ The EU maintains 74 free trade zones,

including one in Denmark: the Freeport of

Copenhagen.

Currency and exchange controls

Official currency: Danish krone (DKK).

Exchange rate arrangement: conventional
pegged arrangement.

ƒ Denmark participates in the European
Exchange Rate Mechanism (ERM II), and
maintains the spot exchange rate between
the DKK and the EUR within margins
of 2.25 percent around the central rate.
The central rate of the Danish krone is
DKK 7.46038 per EUR 1.

ƒ The DKK has fluctuated in a narrow band of
less than 1 percent in recent years.

ƒ Denmark does not impose foreign exchange
controls.

ƒ Individuals importing or exporting the
equivalent of EUR 10,000 or more in

domestic or foreign currency from or to a

country outside the EU are required to notify

customs (www.skat.dk).

Bank accounts

Permission to hold currency accounts

Within

Denmark

Outside

Denmark

DKKForeign currency DKKForeign currency

Resident

company ✔ ✔ ✔ ✔

Non-resident

company ✔ ✔ ✔ N/A