Finland was conquered by Sweden in gradual stages, beginning in the 12th Century. Finland was subject to Sweden beginning in 1581, and in personal union with Sweden beginning in 1772. Finland's formal union with Russia began on September 17, 1809 when it became a Russian Duchy. Finland declared its independence on December 6, 1917.
The first local coins were minted in Finland around 1410. Swedish Riksdalers were used in Finland through 1809. The Riksdaler was issued in silver (Daler Silvermynt-SES), copper and paper formats with the exchange rates between the three fluctuating according to the value of silver, copper and the issue of paper banknotes. The Daler was used in Sweden until 1776. Two accounting systems were used in Sweden, with some provinces using a system based upon silver, and some using a system based on copper. The Daler was approximately divisible into 6 Daler Silvermynt, 18 Daler Kopparmynt, 24 Mark, 48 Skilling, 192 Oere or 512 Oerlein. On November 27, 1776, Gustavus III unified the systems of accounting into a single system based upon silver money with 1 Riksdaler Specie (SES) divisible into 48 Skilling or 192 Oere. Paper Daler (SEP) and Paper Riksdaler (SER) also circulated, though they usually traded at a discount to specie money.
After joining in personal union with Russia, the Ruble was adopted as the medium of exchange in Finland. Russia had reformed the Ruble (RUEI) under Elizabeth II on November 23, 1755, setting 1 Gold Imperial equal to 10 Silver Rubles or 1000 Copper Kopeks. Paper Assignatzia (Ruble-Banco) also circulated, though usually at a discount to specie money. The monetary system was reformed on July 1, 1839 with 1 Silver Ruble (RUES) set equal to 3.5 Ruble Assignatzia (RUEA). Coinage was restricted to Finish and Russian issues. The Ruble Assignatzia were replaced by Credit Ruble Banknotes (RUEP) on June 1, 1843.
On April 4, 1860, Finland declared its monetary independence by issuing the Markka at par with the French Franc Germinal, even though it remained in political union with Russia. The Markka was fixed against the Russian Ruble at the rate of 4 Markkaa = 1 Ruble. When Finland gained its independence in 1917, it removed the Czarist eagle from its coins and banknotes, but made no other immediate changes. In the 1920s when Finland was preparing to return to the Gold Standard, a new currency was proposed for Finland. It would have been called the Taalari, divisible into 100 pennis and worth 25 US cents. The currency was never introduced. Finland left the Gold Standard on October 12, 1931. The old Finland Markka was replaced by a new Finland Markka on January 1, 1963 with 1 New Markka equal to 100 Old Markka. The Markka was divisible into 100 Pennia, and was issued by the Finlands Bank from 1860 until 2002.
Finland adopted the Euro as its currency on January 1, 1999 with one Euro currency union with 1 Euro equal to 5.94573 Markka. Euro coins and banknotes began circulating in Finland on January 1, 2002, and the Markka ceased to be legal tender on February 28, 2002. The Euro is divisible into 100 Cents, and the banknotes are issued by the European Central Bank. |
