![]() ![]() Until the Great Depression in 1929, the Reichsmark was very stable. The new currency was backed by the land used for agriculture and business, and was subdivided into 100 Rentenpfennig.īut the Rentermark was only introduced as an interim currency, and was expanded by the Reichsmark in 1924. When it replaced the Papiermark, 1 Rentenmark was worth 1 billion Papiermark!Īs there was no gold to back the currency due to the economical crisis, it was backed by real goods. The following month the Rentenmark was introduced to provide stability. By then, the Papiermark was worth virtually nothing. Hyperinflation reached its highest point in October 1923. As a result, the rate of inflation rose rapidly. On August 4th 1914, the Papiermark came into effect – the link between the Goldmark and gold was abandoned.ĭue to its low value, vast amounts of Papiermark were printed to buy foreign currency and repay war reparation costs. There was a huge fall in value of the Mark, thanks to Germany’s high reparation costs after the lost war. This meant that if someone was in possession of a bank note, they had the right to get a certain amount of gold. The central bank exchanged cash money into an equal amount of gold. These payments to the German Empire were made in gold. France had to pay high reparation costs after the war. The gold-backed Mark was possible thanks to the French. The German Empire introduced the Goldmark to the kingdom, which could be divided into one hundred Pfennig. As a result, the previous regional currencies were dissolved bit by bit. The German Empire was established after the Franco-German War in 1871. It set a currency standard for use across German states – including Austria and Liechtenstein.Īs a result, in nearly all parts of the German Federation, there was a uniform silver coin in circulation called the Vereinstaler. In 1857, the Vienna Monetary Treaty was responsible for a further unification of Germany. The Confederation was made up of approximately 35 principalities and cities, and they each issued their own coins. However, the Confederation did not have a uniform currency. The German Confederation was established in 1815. In this post, we explore the history of Germany and how its currency changed with the times. Germany’s currency has continually evolved as the country has progressed through times of division, war, recession and hyperinflation. The history of currency in Europe ’s leading nation is incredibly fascinating. In 2017, Germany’s Gross Domestic Product ( GDP ) amounted to €3.3 trillion. ![]() ![]() Germany is currently the strongest economy in the European Union, and the fourth strongest in the world. ![]()
0 Comments
Leave a Reply. |