The union provided fixed exchange rates and stability in monetary terms, but the member countries continued to issue their own separate currencies.

Although not initially foreseen, the perceived security led to a situation where the formally separate currencies were accepted on a basis of "as good as" the legal tender virtually throughout the entire area.

The idea of using a foreign currency was discussed, but as the old dividing of the British Pound was similar to what Scandinavia wished to get rid of, the French defeat in the Franco-Prussian War made the French Franc less attractive and as the German Mark was out of the question in Denmark after the 1864 Second Schleswig War, the idea of a Scandinavian Monetary system based on the Gold standard was imposed 1873 to 1875.

Some experts observe it functioned best between 1901 and 1905, at which point it was a complete system of coin, banknotes and common drawing rights available to the central banks.

Although it was effective in its own limited monetary terms, the Union, however, was only of minor importance in the total foreign relations of the member countries.

[9] Other experts take a more positive view, arguing that no other politically independent countries went equally far in their monetary integration.