Deutsche Mark

History of Deutsche Mark

During the time which followed the Second world war, Germany known one period of monetary disorder. The United States, the United Kingdom and France decided an economic standardization in Western zone. This plan was held secret until the advertisement of the monetary reform of June 20th, 1948 which binds the economy of the three German zones of the west to the Western economic system.

The new monetary unit, the deutschemark (in German die (it) deutsche Mark ), printed in the United States, replaced finally the Reichsmark, always used since the end of the war, in the three zones occupied by the Western forces. Initial foreign exchange rate was 1:1 for the 40 first reichmarks, then of 10:1. This exchange had a disastrous effect for the people who had enormous capital in liquid.

The Soviet zone followed nevertheless the same way with the creation of the mark of the German Democratic republic (or Ostmark ).

The quality of the various tickets was extremely irregular. Thus the tickets of 5 deutschemarks last being replaced almost immediately by new tickets manufactured with the the United Kingdom. they were the first German tickets with a backup tape.

It is in 1955 only that the German Federal government took again the production of its national currency.

January 1st, 1957, the the Saar joined the German Federal republic, and adopted the deutschemark to replace the Franc of the Saar.

The economic growth of the years 1950 and 1960 (economic miracle) is founded on an enormous industrial potential, a skilled labor, the American assistance and a strong demand. The surplus of the trade balance brings to three recoveries a revaluation of the deutschemark.

As from 1972, the deutschemark, as a hard currency, evolved/moved in the European Currency snake, then in 1979 in the European Monetary System (EMS). The deutschemark was thus revalued on several occasions vis-a-vis the other currencies of the EMS.

It is only in November 1989, after the fall of the Berlin Wall and the reunification of Germany, that the Deutsche Mark was introduced into old the East Germany and became the currency of all the Germans. The monetary union between in force on July 1st 1990 and the treaty of unification fixes the conditions of membership of the five Länders at FRG.

In 1991, the top of Maastricht fixed the access terms at the European monetary union.

The solidity of the German currency made that the deutschemark became the currency de facto several countries of Europe of the East like the old republics of Yugoslavia.

Since 1998, the national currency of new European States as the Bosnia-Herzégovine was the convertible Mark (Konvertible Mark, symbolized km, code BAM), aligned at the beginning on the deutschemark and whose value was converted into euro on January 1st, 1999, dates at which the value of the deutschemark was fixed definitively compared to the new European single currency, at a rate of 1,95583 DEM for 1 EURO .

50 years after the monetary reform of 1948, the mark became for many German a symbol of national identification from which they separated only with regret. This currency also symbolized the prosperity and the solidity of the German economy. January 1st, 2002, Germany however was the first member of the European monetary Union (UME) to forsake its national currency to adopt the euro like currency.

In remembering the Deutsche Mark , the parts of 1 and 2 German Euro kept the German eagle on the national face while the German parts of 1,2 and 5 centimes of euro preserved the branch of Chêne which was reproduced on the Pfennig S (1 Deutsche Mark = 100 Pfennigen ).

One can note that the subdivison mark, the pfennig, had a symbol shown opposite.

Convertion rate with the euro

The exact rate of conversion was fixed the coming into effect day before of the economic Union and monetarist (UEM) on January 1st, 1999, a few years before the introduction of the Euro:

1 EUR = 1,95583 DEM

With the other subdivisions of the euro, one deduces the following approximate convertion rates:

1 DEM ≈ 0,511292 EUR
1 FRF ≈ 0,298164 DEM or 1 DEM ≈ 3,35385 FRF.
100 BEF ≈ 4,84838 DEM or 1 DEM ≈ 20,6255 BEF.
100 LUF ≈ 4,84838 DEM or 1 DEM ≈ 20,6255 LUF.

German coins

The German parts are struck in various workshops, of the letters make it possible to identify them:

has : workshop of the Staatliche Münze Berlin of Berlin,
D : workshop of the Bayerisches Hauptmünzamt of Munich,
F : workshop of the Staatliche Münzen Baden-Württemberg of Stuttgart,
G : workshop of the Staatliche Münzen Baden-Württemberg of Karlsruhe,
J : workshop of the Hamburgische Münze of Hamburg.

Parts of current circulation

Series of the Bank Deutscher Länder (1948, 1949 and 1950)

This first series of parts includes/understands only Pfennig , sub-units of the Deutsche Mark . All these parts are marked on their reverse BANK DEUTSCHER LÄNDER .

Series of Bundesrepublik (as from 1950)

Since 1950, one second series of parts is emitted, with the mention BUNDESREPUBLIK DEUTCHLAND in the place of BANK DEUTSCHER LÄNDER on the avers or the reverse. The preceding series is also supplemented of a part of 2 Pfennig and parts of 1 DM, 2 DM and of 5 DM. This series will remain in service until the passage to the euro in 2001.

the series of the PFENNIG

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