Deutsche Mark

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Deutsche Mark
Deutsche Mark (German)
Marka Gjermane (Albanian)
Njemačka marka (Croatian)
Nemačka marka / Немачка марка (Serbian)
100 Mark (O).jpg
DM 100 banknote from 1989
ISO 4217
CodeDEM
Denominations
Subunit
1100 Pfennig
Plural Mark
Pfennig Pfennig
Symbol DM
Pfennig pf
Banknotes
Freq. usedDM 10, DM 20, DM 50, DM 100, DM 200
Rarely usedDM 5, DM 500, DM 1000
Coins
Freq. used1 pf, 2 pf, 5 pf, 10 pf, 50 pf, DM 1, DM 2, DM 5
Demographics
Official user(s)
Unofficial user(s)Flag of the United Nations.svg Kosovo (under UNMIK) [lower-alpha 1] (1999–2002) [1]
Flag of Bosnia and Herzegovina (1992-1998).svg Bosnia and Herzegovina (1992–1998)
Flag of Montenegro (1993-2004).svg Montenegro (1999–2002, in parallel with the Yugoslav dinar until 2000)
Issuance
Central bank Deutsche Bundesbank
Website www.bundesbank.de
Printer
Website
Mint
List
Website
Valuation
Inflation 1.4%, December 2001
Pegged by Bosnia and Herzegovina convertible mark, Bulgarian lev at par
ERM
Since13 March 1979
Fixed rate since31 December 1998
Replaced by €, non cash1 January 1999
Replaced by €, cash1 January 2002/28 February 2002
=DM 1.95583
This infobox shows the latest status before this currency was rendered obsolete.

The Deutsche Mark (German: [ˈdɔʏtʃə ˈmaɐ̯k] ( Loudspeaker.svg listen ), "German mark"), abbreviated "DM" or Loudspeaker.svg "D-Mark"  , was the official currency of West Germany from 1948 until 1990 and later the unified Germany from 1990 until 2002. It was first issued under Allied occupation in 1948 to replace the Reichsmark, and served as the Federal Republic of Germany's official currency from its founding the following year until the adoption of the euro. In English it is commonly called the "Deutschmark" ( /ˈdɔɪmɑːrk/ ); this expression is unknown in Germany. The Germans usually called it D-Mark when referring to the currency, and Mark when talking about individual sums.

A currency, in the most specific sense is money in any form when in use or circulation as a medium of exchange, especially circulating banknotes and coins. A more general definition is that a currency is a system of money in common use, especially for people in a nation. Under this definition, US dollars (US$), pounds sterling (£), Australian dollars (A$), European euros (€), Russian rubles (₽) and Indian Rupees (₹) are examples of currencies. These various currencies are recognized as stores of value and are traded between nations in foreign exchange markets, which determine the relative values of the different currencies. Currencies in this sense are defined by governments, and each type has limited boundaries of acceptance.

West Germany Federal Republic of Germany in the years 1949–1990

West Germany was the informal name for the Federal Republic of Germany, a country in Central Europe, in the period between its formation on 23 May 1949 and German reunification on 3 October 1990. During this Cold War period, the western portion of Germany was part of the Western bloc. The Federal Republic was created during the Allied occupation of Germany after World War II, established from eleven states formed in the three Allied zones of occupation held by the United States, the United Kingdom and France. Its (provisional) capital was the city of Bonn. The Cold War era West Germany is unofficially historically designated the "Bonn Republic".

Contents

In 1999, the Deutsche Mark was replaced by the Euro; its coins and banknotes remained in circulation, defined in terms of euros, until the introduction of euro notes and coins on 1 January 2002. The Deutsche Mark ceased to be legal tender immediately upon the introduction of the euro — in contrast to the other eurozone nations, where the euro and legacy currency circulated side by side for up to two months. Mark coins and banknotes continued to be accepted as valid forms of payment in Germany until 28 February 2002.

Euro European currency

The euro is the official currency of 19 of the 28 member states of the European Union. This group of states is known as the eurozone or euro area, and counts about 343 million citizens as of 2019. The euro is the second largest and second most traded currency in the foreign exchange market after the United States dollar. The euro is divided into 100 cents.

A coin is a small, flat, round piece of metal or plastic used primarily as a medium of exchange or legal tender. They are standardized in weight, and produced in large quantities at a mint in order to facilitate trade. They are most often issued by a government.

Banknote Form of physical currency made of paper, cotton or polymer

A banknote is a type of negotiable promissory note, made by a bank, payable to the bearer on demand. Banknotes were originally issued by commercial banks, which were legally required to redeem the notes for legal tender when presented to the chief cashier of the originating bank. These commercial banknotes only traded at face value in the market served by the issuing bank. Commercial banknotes have primarily been replaced by national banknotes issued by central banks.

The Deutsche Bundesbank has guaranteed that all German marks in cash form may be changed into euros indefinitely, and one may do so in person at any branch of the Bundesbank in Germany. Banknotes and coins can even be sent to the Bundesbank by mail. [2] In 2012, it was estimated that as many as 13.2 billion marks were in circulation, with one poll showing a narrow majority of Germans favouring the currency's restoration (although a minority believed this would not bring any economic benefit). [3]

Deutsche Bundesbank central bank of Germany

The Deutsche Bundesbank is the central bank of the Federal Republic of Germany and as such part of the European System of Central Banks (ESCB). Due to its strength and former size, the Bundesbank is the most influential member of the ESCB. Both the Bundesbank and the European Central Bank (ECB) are located in Frankfurt, Germany. It is sometimes referred to as "Buba" for Bundesbank, while its official abbreviation is BBk.

On 31 December 1998, the Council of the European Union fixed the irrevocable exchange rate, effective 1 January 1999, for German mark to euros as DM 1.95583 = €1. [4]

Council of the European Union institution of the European Union

The Council of the European Union, referred to in the treaties and other official documents simply as the Council, is the third of the seven Institutions of the European Union (EU) as listed in the Treaty on European Union. It is one of three legislative bodies and together with the European Parliament serves to amend and approve the proposals of the European Commission. The Council represents the executive governments of the EU's member states and is based in the Europa building in Brussels.

One Deutsche Mark was divided into 100 Pfennige.

History

Before 1871

A mark had been the currency of Germany since its original unification in 1871. Before that time, the different German states issued a variety of different currencies, though most were linked to the Vereinsthaler, a silver coin containing 16 23 grams of pure silver. Although the mark was based on gold rather than silver, a fixed exchange rate between the Vereinsthaler and the mark of 3 marks = 1 Vereinsthaler was used for the conversion.

Unification of Germany Creation of a politically and administratively integrated nation state of German-speaking populations in 1871, in the form of the German Empire

The unification of Germany into a politically and administratively integrated nation state officially occurred on 18 January 1871, in the Hall of Mirrors at the Palace of Versailles in France. Princes of the German states, excluding Austria, gathered there to proclaim William I of Prussia as German Emperor after the French capitulation in the Franco-Prussian War. Unofficially, the de facto transition of most of the German-speaking populations into a federated organization of states had been developing for some time through alliances formal and informal between princely rulers, but in fits and starts. The self-interests of the various parties hampered the process over nearly a century of autocratic experimentation, beginning in the era of the Napoleonic Wars, which prompted the dissolution of the Holy Roman Empire in 1806, and the subsequent rise of German nationalism.

Vereinsthaler

The Vereinsthaler was a standard silver coin used in most German states and the Austrian Empire in the years before German unification.

Gram Unit of mass 1/1000th of a kilogram

The gram is a metric system unit of mass.

1873–1948

The first mark, known as the Goldmark, was introduced in 1873. With the outbreak of World War I, the mark was taken off the gold standard. The currency thus became known as the Papiermark , especially as high inflation, then hyperinflation occurred and the currency became exclusively made up of paper money. The Papiermark was replaced by the Rentenmark (RM) from November 15, 1923, and the Reichsmark (ℛℳ) in 1924.

German gold mark german currency from 1871-1914

The Goldmark was the currency used in the German Empire from 1873 to 1914. The Papiermark refers to the German currency from 4 August 1914 when the link between the Mark and gold was abandoned.

World War I 1914–1918 global war originating in Europe

World War I, also known as the First World War or the Great War, was a global war originating in Europe that lasted from 28 July 1914 to 11 November 1918. Contemporaneously described as, "the war to end all wars," it led to the mobilisation of more than 70 million military personnel, including 60 million Europeans, making it one of the largest wars in history. It is also one of the deadliest conflicts in history, with an estimated nine million combatants and seven million civilian deaths as a direct result of the war, while resulting genocides and the resulting 1918 influenza pandemic caused another 50 to 100 million deaths worldwide.

Inflation increase in the general price level of goods and services in an economy over a period of time

In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. The measure of inflation is the inflation rate, the annualized percentage change in a general price index, usually the consumer price index, over time. The opposite of inflation is deflation.

Early military occupation following WWII

During the first two years of occupation the occupying powers of France, United Kingdom, United States, and the Soviet Union were not able to successfully negotiate a possible currency reform in Germany. Due to the strains between the Allies each zone was governed independently as regards monetary matters. The US occupation policy was governed by the directive JCS 1067 (in effect until July 1947), which forbade the US military governor "to take any steps to strengthen German financial structure". [5] As a consequence a separate monetary reform in the U.S. zone was not possible. [5] Each of the Allies printed its own occupation currency.

Currency reform of June 1948

The Deutsche Mark was officially introduced on Sunday, June 20, 1948 by Ludwig Erhard. The old Reichsmark and Rentenmark were exchanged for the new currency at a rate of DM 1 = RM 1 for the essential currency such as wages, payment of rents etc., and DM 1 = RM 10 for the remainder in private non-bank credit balances, with half frozen.[ clarification needed ] Large amounts were exchanged for RM 10 to 65 Pfennig. In addition, each person received a per capita allowance of DM 60 in two parts, the first being DM 40 and the second DM 20. [6]

A few weeks later Erhard, acting against orders, issued an edict abolishing many economic controls which had been originally implemented by the Nazis, and which the Allies had not removed. He did this, as he often confessed, on Sunday because the offices of the American, British, and French occupation authorities were closed that day. He was sure that if he had done it when they were open, they would have countermanded the order. [7]

The introduction of the new currency was intended to protect western Germany from a second wave of hyperinflation and to stop the rampant barter and black market trade (where American cigarettes acted as currency). Although the new currency was initially only distributed in the three western occupation zones outside Berlin, the move angered the Soviet authorities, who regarded it as a threat. The Soviets promptly cut off all road, rail and canal links between the three western zones and West Berlin, starting the Berlin Blockade. In response, the U.S. and Britain launched an airlift of food and coal and distributed the new currency in West Berlin as well.

Economics of 1948 currency reform

Since the 1930s, prices and wages had been controlled, but money had been plentiful. That meant that people had accumulated large paper assets, and that official prices and wages did not reflect reality, as the black market dominated the economy and more than half of all transactions were taking place unofficially. The reform replaced the old money with the new Deutsche Mark at the rate of one new per ten old. This wiped out 90% of government and private debt, as well as private savings. Prices were decontrolled, and labor unions agreed to accept a 15% wage increase, despite the 25% rise in prices. The result was the prices of German export products held steady, while profits and earnings from exports soared and were poured back into the economy. The currency reforms were simultaneous with the $1.4 billion in Marshall Plan money coming in from the United States, which primarily was used for investment. In addition, the Marshall plan forced German companies, as well as those in all of Western Europe, to modernize their business practices, and take account of the wider market. Marshall plan funding overcame bottlenecks in the surging economy caused by remaining controls (which were removed in 1949), and opened up a greatly expanded market for German exports. Overnight, consumer goods appeared in the stores, because they could be sold for higher prices. [8] [9] While the availability of consumers goods is seen as a giant success story by most historians of the present, the perception at the time was a different one: prices were so high that average people could not afford to shop, especially since prices were free-ranging but wages still fixed by law. Therefore, in the summer of 1948 a giant wave of strikes and demonstrations swept over West Germany, leading to an incident in Stuttgart where strikers were met by US tanks ("Stuttgarter Vorfälle"). Only after the wage-freeze was abandoned, Deutschmark and free-ranging prices were accepted by the population. [10]

Currency reform in the Soviet occupation zone

In the Soviet occupation zone of Germany (later the German Democratic Republic), the East German mark (also named "Deutsche Mark" from 1948 to 1964 and colloquially referred to as the Ostmark — literally Eastmark) was introduced a few days afterwards in the form of Reichsmark and Rentenmark notes with adhesive stamps to stop the flooding in of Reichsmark and Rentenmark notes from the West. In July 1948, a completely new series of East German mark banknotes was issued.

Bank deutscher Länder and the Deutsche Bundesbank

Later in 1948, the Bank deutscher Länder ("Bank of the German States") assumed responsibility, followed in 1957 by the Deutsche Bundesbank. The Deutsche Mark earned a reputation as a strong store of value at times when other national currencies succumbed to periods of inflation.[ citation needed ] It became a source of national pride and an anchor for the country's economic prosperity,[ citation needed ] particularly during the years of the Wirtschaftswunder in the 1950s.

Currency Union with the Saarland

The population in the Saar Protectorate rejected in a referendum the proposal to turn it into a "European territory". Despite French pre-referendum claims that a "no" vote would mean that the Saar would remain a French protectorate it in fact resulted in the incorporation of the Saar into the Federal Republic of Germany on January 1, 1957. The new German member state of the Saarland maintained its currency, the Saar franc, which was in a currency union at par with the French franc. On July 9, 1959 the Deutsche Mark replaced the Saar franc at a ratio of 100 francs = DM 0.8507.

German reunification

The Deutsche Mark played an important role in the reunification of Germany. It was introduced as the official currency of East Germany in July 1990, replacing the East German mark (Mark der DDR), in preparation for unification on 3 October 1990. East German marks were exchanged for German marks at a rate of 1:1 for the first 4000 marks and 2:1 for larger amounts. Before reunification, each citizen of East Germany coming to West Germany was given Begrüßungsgeld (welcome money), a per capita allowance of DM 100 in cash. The government of Germany and the Bundesbank were in major disagreement over the exchange rate between the East German mark and the German mark.

France and the United Kingdom were opposed to German reunification, and attempted to influence the Soviet Union to stop it. [11] However, in late 1989 France extracted German commitment to the Monetary Union in return for support for German reunification. [12]

Stability

The German mark had a reputation as one of the world's most stable currencies; this was based on the monetary policy of the Bundesbank. The policy was "hard" in relation to the policies of certain other central banks in Europe. The "hard" and "soft" was in respect to the aims of inflation and political interference. This policy was the foundation of the European Central Bank's present policy[ clarification needed ] towards the euro. The German mark's stability was greatly apparent in 1993, when speculation on the French franc and other European currencies caused a change in the European Exchange Rate Mechanism. However, it should be remembered that "hard" is relative only if it is compared to other currencies, as in its 53-year history, the purchasing power of the German mark was reduced by over 70%.

Coins

The first Deutsche Mark coins were issued by the Bank deutscher Länder in 1948 and 1949. From 1950, the inscription Bundesrepublik Deutschland (Federal Republic of Germany) appeared on the coins. These coins were issued in denominations of 1, 2, 5, and 10 pfennigs. The 1- and 2-pfennig coins were struck in bronze clad steel (although during some years the 2 pfennigs was issued in solid bronze) while 5 and 10 pfennigs were brass clad steel. In 1950, cupronickel 50-pfennig and 1-mark coins were released, while a cupronickel 2 marks and a .625 silver 5 marks were released in 1951. Cupronickel replaced silver in the 5 marks in 1975. The 2- and 5-mark coins have often been used for commemorative themes, though typically only the generic design for the 5 marks is intended for circulation. Commemorative silver 10-mark coins have also been issued which have periodically found their way into circulation. Unlike other European countries, Germany retained the use of the smallest coins (1 and 2 pfennigs) until adoption of the euro.

ImageDenominationDates issuedCompositionObverse [13] Reverse
1-PF-Coin-German.jpg 1 pfennig1948–20011948–1949: Bronze-plated steel
1950–2001: Copper-plated steel
Denomination between rye stalksOak sprig
2-PF-Coin-German.jpg 2 pfennigs1950–20011950–1968: Bronze
1968–2001: Bronze-plated steel
Denomination between rye stalksOak sprig
5-PF-Coin-German.jpg 5 pfennigs1949–2001Brass-plated steelDenomination between rye stalksOak sprig
10-PF-Coin-German.jpg 10 pfennigs1949–2001Brass-plated steelDenomination between rye stalksOak sprig
50-PF-Coin-German.jpg 50 pfennigs1949–2001Cupro-nickelDenominationWoman planting an oak seedling [14]
1-DM-Coin-German.jpg DM 11950–2001Cupro-nickelDenomination between oak leaves German eagle
DEU-2m5 2a.jpg DM 21951–1956Cupro-nickelDenomination between rye stalks and grapes [15] German eagle
2DM-Planck 2.jpg 1957–1971Cupro-nickel Max Planck German eagle,

denomination below

1969–2001Cupro-nickel (Cu 75% Ni 25%)1969–1987: Konrad Adenauer
1970–1987: Theodor Heuss
1979–1993: Kurt Schumacher
1988–2001: Ludwig Erhard
1990–2001: Franz Josef Strauss
1994–2001: Willy Brandt
German eagle,

denomination below

Germania 5 marchi 1951.JPG DM 51951–1974.625 silver (Ag 62.5% Cu 37.5%)Denomination German eagle
5-DM-Coin-German.jpg 1975–2001Cupro-nickel (Cu 75% Ni 25%)Denomination German eagle

The weights and dimensions of the coins can be found in an FAQ of the Bundesbank. [16]

Unlike other countries (such as Australia) there was no attempt or proposal suggested for the withdrawal of the 1- and 2-pfennig coins. Both coins were still in circulation in 2001 and supermarkets in particular still marked prices to the nearest pfennig. This penchant for accuracy continues with the euro (while Finland or the Netherlands for example, price to the nearest 5 cents) with the 1-cent coin still encountered in Germany.

There were a considerable number of commemorative silver DM 5 and DM 10 coins, which actually had the status of legal tender but were rarely seen outside of collectors' circles.

Obverse view of the 2001 special gold issue of the DM 1 coin Deutsche Mark(Gold-2001).jpg
Obverse view of the 2001 special gold issue of the DM 1 coin

On 27 December 2000, the German government enacted a law authorizing the Bundesbank to issue, in 2001, a special .999 pure gold 1-mark coin commemorating the end of the German mark. The coin had the exact design and dimensions of the circulating cupro-nickel DM 1 coin, with the exception of the inscription on the reverse, which read "Deutsche Bundesbank" (instead of "Bundesrepublik Deutschland"), as the Bundesbank was the issuing authority in this case. A total of one million gold 1-mark coins were minted (200,000 at each of the five mints) and were sold beginning in mid-2001 through German coin dealers on behalf of the Bundesbank. The issue price varied by dealer but averaged approximately 165 United States dollars.

German coins bear a mint mark, indicating where the coin was minted. D indicates Munich, F Stuttgart, G Karlsruhe and J Hamburg. Coins minted during the Second World War include the mint marks A (Berlin) and B (Vienna). The mint mark A was also used for German mark coins minted in Berlin beginning in 1990 following the reunification of Germany. These mint marks have been continued on the German euro coins.

Between July 1, 1990 (the currency union with East Germany) and July 1, 1991, East German coins in denominations up to 50 pfennigs continued to circulate as Deutsche Mark coins at their face value, owing to a temporary shortage of small coins. These coins were legal tender only in the territory of the former East Germany.

Colloquial expressions

In colloquial German the 10-pfennig coin was sometimes called a groschen (cf. groat). Likewise, sechser (sixer) could refer to a coin of 5 pfennigs. Both colloquialisms refer to several pre-1871 currencies of the previously independent states (notably Prussia), where a groschen was subdivided into 12 pfennigs, hence half a groschen into 6. After 1871, 12 old pfennigs would be converted into 10 pfennigs of the mark, hence 10-pfennig coins inherited the "Groschen" name and 5-pfennig coins inherited the "sechser" name. Both usages are only regional and may not be understood in areas where a Groschen coin did not exist before 1871. In particular, the usage of "sechser" is less widespread. In northern Germany the 5-mark coin used to be also called "Heiermann" (etymology is unclear), whereas in Bavaria the 2-mark coin was called "Zwickl" (as the €2 coin is now).

Banknotes

One Deutsche Mark (1948), first series, Allied military issue. FRG-2a-Allied West Germany-1 Deutsche Mark (1948).jpg
One Deutsche Mark (1948), first series, Allied military issue.

There were four series of German mark banknotes:

The notes with a value greater than 200 marks were rarely seen.

A reserve series (BBk II) was commissioned on July 1, 1960, consisting of 10, 20, 50 and 100 mark banknotes. 670 million BBk II banknotes in value of 25 billion marks were printed. The notes were printed between 1963 and 1974 in fear if the Eastern Bloc would start systematically counterfeiting the BBk I series of banknotes to cripple the economy, then they would quickly be replaced by emergency notes. Another reserve series for West Berlin (BBk IIa) was commissioned on July 1, 1963, consisting of 5, 10, 20, 50 and 100 mark banknotes. 115 million West Berlin banknotes were printed, total value 4 billion marks. 15 billion marks worth of the banknotes were held in Bundesbank's custom-built underground bunker in Cochem in Rheinland-Pfalz, the rest was stored in Bundesbank's vault in Frankfurt.

Banknotes of the fourth series

The design of German banknotes remained unchanged during the 1960s, 1970s and 1980s. During this period, forgery technology made significant advances and so, in the late 1980s, the Bundesbank decided to issue a new series of Deutsche Mark banknotes. The colours for each denomination remained unchanged from the previous series but the designs underwent significant changes and a DM 200 denomination was introduced. Famous national artists and scientists were chosen to be portrayed on the new banknotes. Male and female artists were chosen in equal numbers. The buildings in the background of the notes' obverses had a close relationship to the person displayed (e.g., place of birth, place of death, place of work), as well as the second background picture (Lyra and the musician Schumann). The reverses of the notes refer to the work of the person on the obverse.

The new security features were: a windowed security thread (with the notes' denominations in microprinting), watermarks, microprinting, intaglio printing (viewing-angle dependent visibility as well as a Braille representation of the notes denomination), colour-shifting ink (on the DM 500 and 1000 denominations), a see-through registration device and ultraviolet-visible security features.

First to be issued were the DM 100 and 200 denominations on 1 October 1990 (although the banknote shows "Frankfurt am Main, 2. Januar 1989"). The next denomination was DM 10 on 16 April 1991, followed by DM 50 on 30 September 1991. [17] Next was the DM 20 note on 20 March 1992 (printed on 2 August 1991). The reason for this gradual introduction was, that public should become familiar with one single denomination, before introducing a new one. The change was finished with the introduction of the DM 5, DM 500, and DM 1000 denominations on 27 October 1992. The last three denominations were rarely seen in circulation and were introduced in one step. With the advance of forgery technology, the Bundesbank decided to introduce additional security features on the most important denominations (DM 50, 100 and 200) as of 1996. These were a hologram foil in the center of the note's obverse, a matted printing on the note's right obverse, showing its denomination (like on the reverse of the new €5, €10, and €20 banknotes), and the EURion constellation on the note's reverse. Furthermore, the colours were changed slightly to hamper counterfeiting.

1989 series
ImageDimensionsMain ColorDescriptionDate of
ObverseReverseObverseReverseFirst PrintingIssueWithdrawal
5 Mark (O).jpg 5 Mark (R).jpg 122×62 mmYellowish Green Bettina von Arnim Brandenburg Gate 1/8/199127/10/199231/12/2001
10 Mark (O).jpg 10 Mark (R).jpg 130×65 mmBlue Violet Carl Friedrich Gauss Sextant 2/1/198916/4/199131/12/2001
20 Mark (O).jpg 20 Mark (Re).jpg 138×68 mmBluish Green Annette von Droste-Hülshoff A quill pen and a beech-tree1/8/199120/3/199231/12/2001
50 Deutsche Mark (Obverse).jpg 50 Deutsche Mark (Reverse).jpg 146×71 mmYellowish Brown Balthasar Neumann Partial view of the Würzburg Residence 2/1/198930/9/199131/12/2001
100 Mark (O).jpg 100 Mark (R).jpg 154×74 mmDark Blue Clara Schumann Grand Piano2/1/19891/10/199031/12/2001
200 Mark (Obverse).jpg 200 Mark (Reverse).jpg 162×77 mmOrange Paul Ehrlich Microscope 2/1/19891/10/199031/12/2001
500 Mark (Obverse).jpg 500 Mark (Reverse).jpg 170×80 mmRed Violet Maria Sibylla Merian Dandelion, Inchworm, Butterfly 1/8/199127/10/199231/12/2001
1000 Mark (Obverse).jpg 1000 Mark (Reverse).jpg 178×83 mmDark Brown Wilhelm and Jacob Grimm The 'German Dictionary'1/8/199127/10/199231/12/2001
Hologram variant
50 DM 1996.jpg 50 DM 1996 b.jpg As previous2/1/19962/2/199831/12/2001
100 DM 1996.jpg 100 DM Serie4 Rueckseite.jpg 2/1/19961/8/199731/12/2001
200 DM 1996.jpg 200 DM 1996 b.jpg 2/1/19961/8/199731/12/2001
For table standards, see the banknote specification table.

Spelling and pronunciation

The German name of the currency is Deutsche Mark ( fem. , German pronunciation: [ˈdɔʏtʃə ˈmaʁk] ); its plural form in standard German is the same as the singular. In German, the adjective "deutsche" (adjective for "German" in feminine singular nominative form) is capitalized because it is part of a proper name, while the noun "Mark", like all German nouns, is always capitalized. The English loanword "Deutschmark" has a slightly different spelling and one syllable fewer (possibly due to the frequency of silent e in English), and a plural form in -s.

In Germany and other German speaking countries, the currency's name was often abbreviated as D-Mark ( fem. , [ˈdeːmaʁk] ) or simply Mark ( fem. ) with the latter term also often used in English. Like Deutsche Mark, D-Mark and Mark do not take the plural in German when used with numbers (like all names of units), the singular being used to refer to any amount of money (e.g. eine (one) Mark and dreißig (thirty) Mark). Sometimes, a very colloquial plural form of Mark, Märker [ˈmɛʁkɐ] was used either as hypocoristic form or to refer to a small number of D-Mark coins or bills, e.g. Gib mir mal ein paar Märker ("Just give me a few marks") and Die lieben Märker wieder ("The lovely money again", with an ironic undertone).

The subdivision unit is spelled Pfennig ( masc. ; [ˈpfɛnɪç] ), which unlike Mark does have a commonly used plural form: Pfennige ([ˈpfɛnɪɡə]), but the singular could also be used instead with no difference in meaning. (e.g.: ein (one) Pfennig, dreißig (thirty) Pfennige or dreißig (thirty) Pfennig). The official form is singular.

Reserve currency

Before the switch to the euro, the Deutsche Mark was the largest international reserve currency after the United States dollar.

The percental composition of currencies of official foreign exchange reserves from 1995 to 2017. [18] [19] [20]

Deutsche Mark
   US dollar
   Euro
   Other

See also

Annotations

  1. Kosovo is the subject of a territorial dispute between the Republic of Kosovo and the Republic of Serbia. The Republic of Kosovo unilaterally declared independence on 17 February 2008, but Serbia continues to claim it as part of its own sovereign territory. The two governments began to normalise relations in 2013, as part of the 2013 Brussels Agreement. Kosovo has been recognized as an independent state by 112 out of 193 United Nations member states, while 10 states have recognized Kosovo only to later withdraw their recognition.

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Lithuanian litas former currency of Lithuania

The Lithuanian litas (ISO currency code LTL, symbolized as Lt; plural litai or litų was the currency of Lithuania, until 1 January 2015, when it was replaced by the euro. It was divided into 100 centų. The litas was first introduced on 2 October 1922 after World War I, when Lithuania declared independence and was reintroduced on 25 June 1993, following a period of currency exchange from the ruble to the litas with the temporary talonas then in place. The name was modeled after the name of the country. From 1994 to 2002, the litas was pegged to the U.S. dollar at the rate of 4 to 1. The litas was pegged to the euro at the rate of 3.4528 to 1 since 2002. The euro was expected to replace the litas by 1 January 2007, but persistent high inflation and the economic crisis delayed the switch. On 1 January 2015 the litas was switched to the euro at the rate of 3.4528 to 1.

Pfennig former German coin or note

The pfennig or penny is a former German coin or note, which was official currency from the 9th century until the introduction of the euro in 2002. While a valuable coin during the Middle Ages, it lost its value through the years and was the minor coin of the Mark currencies in the German Reich, West and East Germany, and the reunified Germany until the introduction of the euro. Pfennig was also the name of the subunit of the Danzig mark (1922–1923) and the Danzig gulden (1923–1939) in the Free City of Danzig.

Romanian leu currency of Romania

The Romanian leu is the currency of Romania. It is subdivided into 100 bani, a word that is also used for "money" in the Romanian language.

Reichsmark Former currency of Germany

The Reichsmark was the currency in Germany from 1924 until 20 June 1948 in West Germany, where it was replaced with the Deutsche Mark, and until 23 June in East Germany when it was replaced by the East German mark. The Reichsmark was subdivided into 100 Reichspfennig. The Mark is an ancient Germanic weight measure, traditionally a half pound, later used for several coins; whereas Reich, that is realm in English, comes from the official name for the German nation state from 1871 to 1945, Deutsches Reich.

German Papiermark currency of germany from 1914-1923

The name Papiermark is applied to the German currency from 4 August 1914 when the link between the Goldmark and gold was abandoned, due to the outbreak of World War I. In particular, the name is used for the banknotes issued during the hyperinflation in Germany of 1922 and especially 1923.

Italian lira currency

The lira was the currency of Italy between 1861 and 2002 and of the Albanian Kingdom between 1941 and 1943. Between 1999 and 2002, the Italian lira was officially a national subunit of the euro. However, cash payments could be made in lira only, as euro coins or notes were not yet available. The lira was also the currency of the Napoleonic Kingdom of Italy between 1807 and 1814.

German Rentenmark german currency 1923 - 1924

The Rentenmark was a currency issued on 15 November 1923 to stop the hyperinflation of 1922 and 1923 in Weimar Germany, after the previously used "paper" Mark had become almost worthless. The name literally meant "pension mark", in order to signal that pensions were secure. It was subdivided into 100 Rentenpfennig and was expanded in 1924 by the Reichsmark.

Azerbaijani manat Currency of Azerbaijan

The manat is the currency of Azerbaijan. It is subdivided into 100 qəpik.

Belgian franc currency of the Kingdom of Belgium from 1832 until 2002

The Belgian franc was the currency of the Kingdom of Belgium from 1832 until 2002 when the Euro was introduced. It was subdivided into 100 subunits, known as centiemen (Dutch), centimes (French) or Centime (German).

Luxembourgish franc currency

The Luxembourgish franc was the currency of Luxembourg between 1854 and 1999. The franc remained in circulation until 2002, when it was replaced by the euro. During the period 1999–2002, the franc was officially a subdivision of the euro but the euro did not circulate. Under the principle of "no obligation and no prohibition", financial transactions could be conducted in euros and francs, but physical payments could only be made in francs, as euro notes and coins were not available yet.

Yugoslav dinar currency of the three Yugoslav states between 1918 and 2003

The dinar was the currency of the three Yugoslav states: the Kingdom of Yugoslavia, the Socialist Federal Republic of Yugoslavia, and the Federal Republic of Yugoslavia between 1918 and 2006. The dinar was subdivided into 100 para. In the early 1990s, as economic mismanagement made the government bankrupt and forced it to take money from the savings of the country's citizens. This caused severe and prolonged hyperinflation, which has been described as the worst in history. Large amounts of money were printed, with coins becoming redundant and inflation rates reaching over one billion per cent per year. This hyperinflation caused five revaluations between 1990 and 1994; in total there were eight distinct dinari. Six of the eight have been given distinguishing names and separate ISO 4217 codes. The highest denomination banknote was 500 billion dinars, which became worthless a fortnight after it was printed.

Danzig gulden currency of the Free City of Danzig between 1923 and 1939

The gulden was the currency of the Free City of Danzig between 1923 and 1939. It was divided into 100 pfennige.

References

  1. "Kosovo adopts Deutschmark". BBC. 3 September 1999. Retrieved 22 June 2013.
  2. "Exchanging DM for euro". Bundesbank. Archived from the original on 2015-01-03. Retrieved 2015-01-04.
  3. "Why are Germans still using the deutsche mark?". theweek.com. 19 July 2012. Archived from the original on 13 December 2014. Retrieved 27 April 2018.
  4. "Determination of the euro conversion rates". European Central Bank. 1999-01-01. Archived from the original on 2007-12-01. Retrieved 2008-02-20.
  5. 1 2 Nicholas Balabkins, "Germany Under Direct Controls: Economic Aspects of Industrial Disarmament 1945–1948", Rutgers University Press, 1964 p. 145
  6. Bundesbank.de Archived 2017-01-24 at the Wayback Machine Accessed 2015-01-04
  7. Tyler Cowen, "The Marshall Plan: myths and realities" in U.S. Aid to the Developing World, A Free Market Agenda Archived 2011-01-22 at the Wayback Machine , Heritage Foundation, p.65
  8. Tipton, Frank B. (2003). History of Modern Germany since 1815. Berkeley: University of California Press. pp. 511–13. ISBN   0-520-24050-2.
  9. Sauermann, Heinz (1950). "The Consequences of the Currency Reform in Western Germany". Review of Politics . 12 (2): 175–196. JSTOR   1405052.
  10. Jörg Roesler: Die Stuttgarter Vorfälle vom Oktober 1948. Zur Entstehung der Sozialen Marktwirtschaft in der Bundesrepublik Deutschlands, in: Jahrbuch für Forschungen zur Geschichte der Arbeiterbewegung, No I/2007; Uwe Fuhrmann: Stuttgart 48 und die soziale Marktwirtschaft, in: Fuhrman et. a. (eds.): Ignoranz und Inszenierung, Münster 2012
  11. "Thatcher told Gorbachev Britain did not want German reunification". Michael Binyon. London: Times. September 11, 2009. Archived from the original on May 4, 2012. Retrieved 2012-05-06.
  12. Ben Knight (2009-11-08). "Germany's neighbors try to redeem their 1989 negativity". Deutsche Welle. Archived from the original on 2009-11-11. Retrieved 2009-11-09.
  13. "Coins of the Federal Republic of Germany". Coin and banknote collection. Archived from the original on 8 July 2009. Retrieved 2 May 2010.
  14. The sculptor Richard Martin Werner designed the woman relief after his wife Gerda Johanna Werner ‹See Tfd› (in German).
  15. Sammler.com Archived 2018-04-27 at the Wayback Machine Withdrawn on 1 July 1958 over confusion with the similarly designed 1 DM
  16. "Deutsche Mark coins". Frequently Asked Questions (FAQ). 2019. Retrieved 3 January 2019.
  17. Linzmayer, Owen (2012). "Federal Republic of Germany". The Banknote Book. San Francisco, CA: www.BanknoteNews.com. Archived from the original on 2012-08-29.
  18. For 1995–99, 2006–17: "Currency Composition of Official Foreign Exchange Reserves (COFER)". Washington, DC: International Monetary Fund. August 14, 2018.
  19. For 1999–2005: International Relations Committee Task Force on Accumulation of Foreign Reserves (February 2006), The Accumulation of Foreign Reserves (PDF), Occasional Paper Series, Nr. 43, Frankfurt am Main: European Central Bank, ISSN   1607-1484 ISSN   1725-6534 (online).
  20. Review of the International Role of the Euro (PDF), Frankfurt am Main: European Central Bank, December 2005, ISSN   1725-2210 ISSN   1725-6593 (online).
Preceded by:
Reichsmark, Rentenmark, AM-Mark
Reason: intended to protect West Germany from the second wave of hyperinflation and stop the rampant barter and black market trade
Ratio: 1 DM = 1 RM (either) below 600 RM
1 DM = 10 RM above 600 RM
and each person received 40 DM
Currency of West Germany (incl. West Berlin)
21 (24 W-Berlin) June 1948 30 June 1990
Note: except of the state of the Saarland (1957–1959)
Currency of Germany
1 July 1990 31 December 2001
Note: euro existed as money of account since 1 January 1999, with DM coins and banknotes being the German appearance of the euro
Succeeded by:
Euro
Reason: deployment of euro cash
Ratio: 1 euro = 1.95583 Deutsche Mark
Preceded by:
French franc and Saar Franc
Reason: currency union (9 July 1959), after the Saarland had joined West Germany (1 January 1957)
Ratio: 100 Francs = 0.8507 Deutsche Mark
Preceded by:
Mark of the GDR
Reason: currency union (1 July 1990) preparing the German reunification (3 October 1990)
Ratio: at par up to 4000 GDR marks
2 GDR marks = 1 DM above 4000 GDR marks
Preceded by:
Yugoslav new dinar
Reason: political and economic reasons
Currency of Kosovo, Montenegro
1999 31 December 2001