The currencies of Hong Kong and Norway, two countries that couldn't be more different and that are separated by thousands of kilometers, are almost identical in value. Since 1983, the value of the Hong Kong dollar has been pegged to the value of the United States dollar, while the value of the Norwegian krone is pegged to a basket of currencies. One United States dollar is equivalent to 7.
8 Hong Kong dollars and 8.7 Norwegian kroner as of the start of the month of July 2019, respectively.In the past, Hong Kong was a colony of the United Kingdom, and its currency, the Hong Kong dollar, was tied to the pound of that country.
The dollar was selected as the new reference point in 1971. Since that time, the peg has remained where it was, despite the fact that there has been some discussion over the possibility of removing it.For a significant portion of its history, Norway was a component of the Kingdom of Denmark.
As part of the Treaty of Kiel, which was signed in 1814, Norway was handed up to Sweden. Up until 1905, Norway was ruled by Sweden; nevertheless, in that year, it finally declared its independence. The Norwegian speciedaler was used as currency until 1875, when it was replaced by the Norwegian krone.
After being linked to the British pound from 1875 until 1913, the krone was then pegged to the Swedish krona for the remainder of its existence. In 1925, a transition to the gold standard was made in the peg system. The peg was removed from the krone in 1931, and it then began to float freely against other currencies.
Between the years 1942 and 1945, the krone was tied to the value of the United States dollar; after that, it was tied to the value of the British pound. The IMF's basket of currencies became the new reference point for the peg in 1949. In 1971, the peg was removed, and after that, the krone was permitted to float freely against other currencies.