DEFINITION of 'SEK (Swedish Krona)'
The currency abbreviation for the Swedish krona (SEK), the currency for Sweden. The Swedish krona is made up of 100 öre and is often presented with the symbol kr. The krona, which means "crown" in English, is also known in Sweden as the "spänn" or "kosing".
BREAKING DOWN 'SEK (Swedish Krona)'
The Swedish krona replaced the riksdaler riksmynt at par in 1873, when the Scandinavian Monetary Union was formed. This union of Sweden, Denmark and Norway used the gold standard to value the krona at 1/2,480 of a kilogram of gold. After WWI and the break-up of the union, the currencies were separated, and Sweden kept its own respective krona.
Since 1992, the exchange rate has been allowed to float against other currencies, with the central bank intervening when necessary to stabilize the krona's value.