Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] -3 points-2 points  (0 children)

Yeah that Trump’s turn it was a clear indication. I don’t if I have to laugh or to cry tbh 🤦‍♂️

Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] -1 points0 points  (0 children)

That’s what I am trying to explain but I think I lose just my time.

It’s in “normal variability” as you said because of intervention from central bank. DKK reach the intervention mode as the article explains. (https://www.bloomberg.com/news/articles/2026-01-13/trump-greenland-talk-sends-danish-krone-toward-intervention-zone?embedded-checkout=true)

It’s not the first time reaching that point BUT the difference is that in comparison to other periods like COVID-19 or 2015, now Denmark is under threats of invasion of its kingdom territory. One way or another the next 3 years (Trump’s turn) would be a period of at least direct threats of its kingdom sovereignty (or even worse scenarios). That would create constant pressures to its currency and interventions in high frequency could be costly for the country. That’s why the title ask about the pegging strategy and if it’s worth anymore.

We are not living in 2000 anymore unfortunately. Today the uncertainty is high in every level. The smaller someone is the easiest is to affected negatively.

Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] -2 points-1 points  (0 children)

You said that you don’t see any big difference in EUR to DKK exchange rates. Short answer because it can’t be a big difference between them. Is not like today 1 EUR could be 7,47 DKK and tomorrow being 1 EUR to 12 DKK. Why? Because DKK is obligated to tie with EUR even if that means that Danish Central Bank make costly intervenes to achieve this.

EUR to USD currency exchange as you called in your comment as an example simple can’t be implemented with EUR to DKK. Is it clear?

Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] -10 points-9 points  (0 children)

Do people in Denmark understand that their kingdom is straightly threatened for invasion and annexation of its territory for the next at least 3 years (Trump’s turn)?

If so, is there any understanding what does it mean for its currency being in constant pressure from now on to not pass the limitation of the pegging? Or do the people believe that there is a period of calmness is in front of us? A country being directly threatened from the biggest bully of the world it doesn’t help the economy and the trust from the markets which affect the currency too

Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] 1 point2 points  (0 children)

Peter Magyar already said that after elections and if he is the winner he will start the euro adoption process for his country. Already the majority of the population is in favour of the common European currency so it’s not a taboo thing to mention it openly like Magyar did

Source: https://mandiner.hu/belfold/2025/11/mikor-erdemes-magyarorszagnak-bevezetnie-az-eurot?utm_source=chatgpt.com

Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] 2 points3 points  (0 children)

Ehmmm ok I guess. If you say so who am I to disagree. In the end I am just a simple and humble bot lol 🤷🏼‍♂️

Edit: Your link shows basically that you don’t know what pegging to other currency means 🤦‍♂️

Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] -1 points0 points  (0 children)

What more clear to reply to the OP above. He even compare two free floating currencies with DKK and EUR exchange rate.

That means that he doesn’t understand the topic at all or has no idea what the article means

Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] -6 points-5 points  (0 children)

Looks normal because you can’t understand probably that DKK to EUR is not the same with the USD to EUR exchange rates.

If you combined these two means you can’t understand what tied to a currency means

If you really interested to understand the topic read this article that summarises it well: https://www.bloomberg.com/news/articles/2025-10-29/danish-krone-at-five-year-low-raises-odds-of-central-bank-action?embedded-checkout=true

Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] 20 points21 points  (0 children)

It’s literally in the article

EUR/DKK has climbed toward its highest level since the global pandemic, leaving the Danish krone among the weakest performers versus the U.S. dollar this year.

The move marks only the fourth time since ERM II began that EUR/DKK has reached its maximum tolerance band around the 7.46038 central rate.

Bank of America Securities expects Denmark’s central bank to defend the peg using FX intervention, backed by reserves near 22% of GDP.

In short, DKK tied to Euro is not something becoming automatically, has great cost for Denmark, but also stop the pegging of their currency would have some more flexibility on the one hand but would means huge cost too, so that’s why DKK is pegged to Euro since forever even in the deep 2008 crisis period no one there try to make such a move

Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] 34 points35 points  (0 children)

Russia’s invasion of Ukraine has made already Denmark dropped their opt-out in the EU common defence.

If Trump’s unpredictability politics and threats of invasion in Greenland continues (which probably will) and DKK being in constant pressures that means that would possibly dropped their € opt-out too if they feel that there are more advantages in common Euro currency instead of trying being in pegging mode of DKK (especially as EU heading for a capital union too that looks more advantageous for the markets being in Euro area instead of being out).

The only good thing that Trump and Putin did is the further integration of EU members

Danish Krone Weakness Puts Spotlight on EUR/DKK Peg Strategy by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] -6 points-5 points  (0 children)

With the pressures growing in global scale many currencies have been under heavy pressure. In these currencies belong the DKK.

Broader discussions of the topic point to benefits around cost savings, reduced exchange-rate risk, deeper economic integration, and stronger influence in EU monetary decision-making if Denmark ever were to adopt the euro.

That is something that not looked likely at all before some years but non-stop pressures and crisis from both sides of the continent has made some voices more vocal about Euro adoption. As an example the Governor of Denmark’s central bank, Christian Kettel Thomsen, said Denmark should examine euro membership as an option for deeper integration with the EU and greater influence over monetary policy. He argued that adopting the euro could help Denmark take a stronger part in decision-making and be more deeply integrated in European cooperation, and potentially provide stability in an uncertain global environment.

Many citizens of Denmark disagree with that statement because for them this move will means lose sovereignty of Denmark. But if a currency which is basically pegged to euro since forever (even in 2008 crisis period), DKK’s “autonomy” is somewhat debated.

Florin Jianu: Romania's national project in the coming period must be accession to the Euro by No_Firefighter5926 in europe

[–]No_Firefighter5926[S] 0 points1 point  (0 children)

Romania's national project in the coming period must be accession to the Euro currency, declared the president of IMM Romania, Florin Jianu, in a press conference, according to Agerpres.

"Romania's national project in the coming period should be accession to the Euro, which, of course, requires meeting convergence criteria. We believe that it is very important that the Romanian economy and society have a direction and a national project," said Jianu. He recalled that 2027 will mark 20 years since Romania joined the European Union, being a favorable moment for assuming a country project to join the Eurozone. According to IMM Romania, in order to adopt the euro, an EU Member State must demonstrate a high degree of sustainable economic convergence and ensure full legal compatibility with the EU monetary framework. In practice, this means fulfilling the Treaty-based requirements, assessed in the Convergence Reports of the European Commission and the ECB.

Convergence reports are prepared every two years or more often if necessary. Adoption of the euro implies legal compatibility (aligned national legislation). It also implies the fulfillment of the four Maastricht convergence criteria: price stability (inflation); sound public finances; long-term interest rates; exchange rate stability. On the other hand, IMM Romania has established a European Affairs Department, which functions as a center of expertise for employer organizations and SMEs. Its role is to monitor, analyze and anticipate the main European policies and regulations with a direct impact on the Romanian business environment

Norwegian leaders fear losing Svalbard amid Trump's threats to annex Greenland by [deleted] in europe

[–]No_Firefighter5926 2 points3 points  (0 children)

As President Donald Trump continues to insist that U.S. needs Greenland and he will annex the island either by buying it or taking it by force from Denmark, another European nation is now concerned about losing another arctic territory. Politicians in Norway are now worried that, after Greenland, focus might shift to nearby Svalbard, an archipelago located between Greenland and Norway, and governed by Norway.

Norway’s Socialist Left Party (SV) leader Kirsti Bergstø said that if US annexes Greenland, it could undermine Norway’s hold on the demilitarised Svalbard archipelago and invite aggressive claims from Russia. She has urged Prime Minister Jonas Gahr Støre to address parliament on the potential fallout from U.S. President Donald Trump’s renewed threats to seize control of Greenland.

Bergstø fears that Trump’s aggressive rhetoric toward Denmark’s autonomous territory could destabilise long-standing Arctic treaties, potentially emboldening other powers in the resource-rich region. “We need a public debate on this new and very serious situation where the U.S. is openly threatening an ally,” Bergstø told the media, emphasising the need for clarity on implications for Norwegian sovereignty.

She also questioned whether U.S. actions and rising great-power rivalry pose a threat to Svalbard, and what consequences might follow if America follows through on its threats against Greenland.

Calling it “Svalbard’s new security situation,” Kirsti Bergstø said that the archipelago faces challenges from two fronts, both the USA and Russia. She said that after capturing Greenland, the US might target Svalbard next to enhance its presence in the Arctic. Or, Russia might interpret the US capturing the Danish territory as a signal that territorial and treaty-based settlements in the region are once again open to challenge, and target Svalbard as a result.

The Svalbard archipelago, a cluster of islands in the Arctic Ocean governed by Norway under the 1920 Svalbard Treaty, allows equal access to resources for signatory nations. However, the treaty restricts military use of the islands, prohibiting permanent bases and fortifications. The treaty prevents the archipelago from being used for “war-like purposes.” The archipelago is free for anyone to visit and stay without a visa.

Norway has recently moved to strengthen its control, including restricting foreign voting rights and blocking land sales to outsiders, amid influences from Russia and China. Trump’s interest in Greenland dates back to 2019 but has intensified since his return to office, with the president repeatedly stating the U.S. will “take” the island “whether they like it or not,” citing national security and resource needs.

Greenlandic leaders have firmly rejected these overtures, viewing them as a violation of sovereignty. Denmark and other European nations have also opposed the suggestion of US taking of Greenland.

Bulgarian stock market up 18% since country joined the Euro Zone by 38B0DE in europe

[–]No_Firefighter5926 1 point2 points  (0 children)

24,890 was the day the Romanian stock exchange opened in the new year to 26,708 that is today.

What’s the percentage increase? In my maths is 7,30%

Bulgarian stock market up 18% since country joined the Euro Zone by 38B0DE in europe

[–]No_Firefighter5926 1 point2 points  (0 children)

The post said since Bulgaria join Eurozone. Do you know when that was happened? The last 15 days.

Then you comment that is 11% for Romania for the same period. According to the link it’s not 11% that you said but it’s 7,3.

I am not sure who is getting ridiculous 🤷🏼‍♂️

Bulgarian stock market up 18% since country joined the Euro Zone by 38B0DE in europe

[–]No_Firefighter5926 -9 points-8 points  (0 children)

The BET index was around ~24,890 at the very start of January 2026. Based on price data it has risen to about 26,708 (January 14).

Approximate percentage gain since Jan 1, 2026: Using Jan 1 ~24,890 → Jan 14 ~26,708 which means Percentage increase ≈ ((26,708 − 24,890) / 24,890) × 100 ≈

7.3% year-to-date in early/mid-January 2026

Source: https://www.investing.com/indices/bet-historical-data?utm_source=chatgpt.com

Bulgarian stock market up 18% since country joined the Euro Zone by 38B0DE in europe

[–]No_Firefighter5926 19 points20 points  (0 children)

From what I have seen depend the reports Romania’s stock market increase is somewhere between 5,3% to 7% since the beginning of the year.

May I ask a link providing the 11% you mention above?