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The Deutsche Mark (; "German
mark Mark may refer to: In the Bible * Mark the Evangelist (5–68), traditionally ascribed author of the Gospel of Mark * Gospel of Mark, one of the four canonical gospels and one of the three synoptic gospels Currencies * Mark (currency), a currenc ...
"), abbreviated "DM" or "D-Mark" (), was the official
currency A currency is a standardization of money in any form, in use or circulation as a medium of exchange, for example banknotes and coins. A more general definition is that a currency is a ''system of money'' in common use within a specific envi ...
of
West Germany West Germany was the common English name for the Federal Republic of Germany (FRG) from its formation on 23 May 1949 until German reunification, its reunification with East Germany on 3 October 1990. It is sometimes known as the Bonn Republi ...
from 1948 until 1990 and later of unified
Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen States of Germany, constituent states have a total popu ...
from 1990 until the adoption of the
euro The euro (currency symbol, symbol: euro sign, €; ISO 4217, currency code: EUR) is the official currency of 20 of the Member state of the European Union, member states of the European Union. This group of states is officially known as the ...
in 2002. In English, it was typically called the "Deutschmark" ( ). One Deutsche Mark was divided into 100
pfennig The pfennig (; . 'pfennigs' or 'pfennige' ; currency symbol, symbol pf or ₰) or penny is a former Germany, German coin or note, which was an official currency from the 9th century until the introduction of the euro in 2002. While a valua ...
s. It was first issued under Allied occupation in 1948 to replace the
Reichsmark The (; sign: ℛ︁ℳ︁; abbreviation: RM) was the currency of Germany from 1924 until the fall of Nazi Germany in 1945, and in the American, British and French occupied zones of Germany, until 20 June 1948. The Reichsmark was then replace ...
and served as the Federal Republic of Germany's official currency from its founding the following year. On 31 December 1998, the
Council of the European Union The Council of the European Union, often referred to in the treaties and other official documents simply as the Council, and less formally known as the Council of Ministers, is the third of the seven institutions of the European Union (EU) a ...
fixed the irrevocable exchange rate, effective 1 January 1999, for German mark to euros as DM 1.95583 = €1. In 1999, the Deutsche Mark was replaced by the euro; its
coin A coin is a small object, usually round and flat, 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 ...
s and
banknote A banknote or bank notealso called a bill (North American English) or simply a noteis a type of paper money that is made and distributed ("issued") by a bank of issue, payable to the bearer on demand. Banknotes were originally issued by commerc ...
s 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 Legal tender is a form of money that Standard of deferred payment, courts of law are required to recognize as satisfactory payment in court for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything ...
immediately upon the introduction of the euro—in contrast to the other
eurozone The euro area, commonly called the eurozone (EZ), is a Monetary union, currency union of 20 Member state of the European Union, member states of the European Union (EU) that have adopted the euro (Euro sign, €) as their primary currency ...
states, 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 1 March 2002. The 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. In 2012, it was estimated that as many as 13.2 billion marks were in circulation, with one poll from 2011 showing a narrow majority of Germans favouring the currency's restoration (although only a minority believed this would bring any economic benefit). Polls in the early 2020s indicated only a minority of Germans supported reintroduction of the Deutsche Mark.


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, the most common being the
North German thaler The North German thaler was a currency used by several states of Northern Germany from 1690 to 1873, first under the Holy Roman Empire, then by the German Confederation. Originally equal to the Reichsthaler specie or silver coin from 1566 until t ...
and the
South German gulden The South German Gulden was the currency of the states of Southern 18th century history of Germany, Germany between 1754 and 1873. These states included Bavaria, Baden, Württemberg, Free City of Frankfurt, Frankfurt and Hohenzollern. It was di ...
. By 1857, both currencies were linked to the
Vereinsthaler The Vereinsthaler (, ''union thaler'') was a standard silver coin used in most German states and the Austrian Empire in the years before German unification. The Vereinsthaler was introduced in 1857 to replace the various versions of the North G ...
, a silver coin containing
gram The gram (originally gramme; SI unit symbol g) is a Physical unit, unit of mass in the International System of Units (SI) equal to one thousandth of a kilogram. Originally defined in 1795 as "the absolute Mass versus weight, weight of a volume ...
s of pure silver. Although the
German gold mark The German mark ( ; sign: ℳ︁) was the currency of the German Empire, which spanned from 1871 to 1918. The mark was paired with the minor unit of the pfennig (₰); 100 pfennigs were equivalent to 1 mark. The mark was on the gold stand ...
was based on gold rather than silver (at 2.79 marks per gram of fine gold), a fixed exchange rate between the Vereinsthaler and the mark of 3 marks = 1 Vereinsthaler was used for the conversion.


1873–1948

The first mark, known as the '' Goldmark'', was introduced in 1873. With the outbreak of
World War I World War I or the First World War (28 July 1914 – 11 November 1918), also known as the Great War, was a World war, global conflict between two coalitions: the Allies of World War I, Allies (or Entente) and the Central Powers. Fighting to ...
, the mark was taken off the gold standard. The currency thus became known as the ''
Papiermark The Papiermark (; 'paper mark') was a derisive term for the Mark (currency sign, sign: ℳ︁) after it went off the gold standard, and most specifically with the era of Hyperinflation in the Weimar Republic, hyperinflation in Germany of 1922 a ...
'', especially as high
inflation In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...
, then
hyperinflation In economics, hyperinflation is a very high and typically accelerating inflation. It quickly erodes the real versus nominal value (economics), real value of the local currency, as the prices of all goods increase. This causes people to minimiz ...
occurred and the currency became exclusively made up of paper money. The ''Papiermark'' was replaced by the '' Rentenmark'' (RM) from 15 November 1923, and the ''
Reichsmark The (; sign: ℛ︁ℳ︁; abbreviation: RM) was the currency of Germany from 1924 until the fall of Nazi Germany in 1945, and in the American, British and French occupied zones of Germany, until 20 June 1948. The Reichsmark was then replace ...
'' (ℛ︁ℳ︁) in 1924.


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 The Morgenthau Plan was a proposal to weaken Germany following World War II by eliminating its arms industry and removing or destroying other key industries basic to military strength. This included the removal or destruction of all industrial ...
(in effect until July 1947), which forbade the US military governor "to take any steps to strengthen German financial structure".Nicholas Balabkins, ''"Germany Under Direct Controls: Economic Aspects of Industrial Disarmament 1945–1948"'', Rutgers University Press, 1964 p. 145 As a consequence a separate monetary reform in the U.S. zone was not possible. Each of the Allies printed its own occupation currency.


Currency reform of June 1948

The Deutsche Mark was officially introduced on Sunday 20 June 1948 by
Ludwig Erhard Ludwig Wilhelm Erhard (; 4 February 1897 – 5 May 1977) was a German politician and economist affiliated with the Christian Democratic Union of Germany, Christian Democratic Union (CDU), and Chancellor of Germany (1949–), chancellor of West Ge ...
. Large amounts were exchanged for 10 ℛ︁ℳ︁ to 65pf. 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. 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.Tyler Cowen, "The Marshall Plan: myths and realities" i
U.S. Aid to the Developing World, A Free Market Agenda
, Heritage Foundation, p.65
The introduction of the new currency was intended to protect western Germany from a second wave of
hyperinflation In economics, hyperinflation is a very high and typically accelerating inflation. It quickly erodes the real versus nominal value (economics), real value of the local currency, as the prices of all goods increase. This causes people to minimiz ...
and to stop the rampant barter and
black market A black market is a Secrecy, clandestine Market (economics), market or series of transactions that has some aspect of illegality, or is not compliant with an institutional set of rules. If the rule defines the set of goods and services who ...
trade (where cigarettes were used as currency). Although the new currency was initially only distributed in the three western occupation zones outside Berlin, the move angered the
Soviet The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of 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 West Berlin ( or , ) was a political enclave which comprised the western part of Berlin from 1948 until 1990, during the Cold War. Although West Berlin lacked any sovereignty and was under military occupation until German reunification in 1 ...
, starting the
Berlin Blockade The Berlin Blockade (24 June 1948 – 12 May 1949) was one of the first major international crises of the Cold War. During the multinational occupation of post–World War II Germany, the Soviet Union blocked the Western Allies' railway, roa ...
. 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 The Marshall Plan (officially the European Recovery Program, ERP) was an American initiative enacted in 1948 to provide foreign aid to Western Europe. The United States transferred $13.3 billion (equivalent to $ in ) in economic recovery pr ...
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. While the availability of consumer 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.


Currency reform in the Soviet occupation zone

In the
Soviet occupation zone The Soviet occupation zone in Germany ( or , ; ) was an area of Germany that was occupied by the Soviet Union as a communist area, established as a result of the Potsdam Agreement on 2 August 1945. On 7 October 1949 the German Democratic Republ ...
of Germany (later the
German Democratic Republic East Germany, officially known as the German Democratic Republic (GDR), was a country in Central Europe from Foundation of East Germany, its formation on 7 October 1949 until German reunification, its reunification with West Germany (FRG) on ...
), the
East German mark The East German mark ( ), commonly called the eastern mark ( ) in West Germany and after German reunification, reunification, was the currency of the East Germany, German Democratic Republic (East Germany). Its ISO 4217, ISO 4217 currency code w ...
(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 . The Deutsche Mark earned a reputation as a strong
store of value A store of value is any commodity or asset that would normally retain purchasing power into the future and is the function of the asset that can be saved, retrieved and exchanged at a later time, and be predictably useful when retrieved. The most ...
at times when other national currencies succumbed to periods of
inflation In economics, inflation is an increase in the average price of goods and services in terms of money. This increase is measured using a price index, typically a consumer price index (CPI). When the general price level rises, each unit of curre ...
. It became a source of national pride and an anchor for the country's economic prosperity, particularly during the years of the ''
Wirtschaftswunder The ''Wirtschaftswunder'' (, "economic miracle"), also known as the Miracle on the Rhine, was the rapid reconstruction and development of the Economy, economies of West Germany and Austria after World War II. The expression was first used to re ...
'' in the 1950s.


Currency union with the Saarland

The population in the
Saar Protectorate The Saar Protectorate ( ; ), officially Saarland (), was a short-lived French protectorate and a disputed territory separated from Germany. On joining the Federal Republic of Germany (FRG/West Germany) in 1957, it became the smallest "federal ...
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 A protectorate, in the context of international relations, is a State (polity), state that is under protection by another state for defence against aggression and other violations of law. It is a dependent territory that enjoys autonomy over ...
it in fact resulted in the incorporation of the Saar into the
Federal Republic of Germany Germany, officially the Federal Republic of Germany, is a country in Central Europe. It lies between the Baltic Sea and the North Sea to the north and the Alps to the south. Its sixteen constituent states have a total population of over 84 ...
on 1 January 1957. The new German
member state A member state is a state that is a member of an international organization or of a federation or confederation. Since the World Trade Organization (WTO) and the International Monetary Fund (IMF) include some members that are not sovereign states ...
of the
Saarland Saarland (, ; ) is a state of Germany in the southwest of the country. With an area of and population of 990,509 in 2018, it is the smallest German state in area apart from the city-states of Berlin, Bremen, and Hamburg, and the smallest in ...
maintained its currency, the Saar franc, which was in a currency union at par with the
French franc The franc (; , ; currency sign, sign: F or Fr), also commonly distinguished as the (FF), was a currency of France. Between 1360 and 1641, it was the name of coins worth 1 livre tournois and it remained in common parlance as a term for this amoun ...
. On 9 July 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 East Germany, officially known as the German Democratic Republic (GDR), was a country in Central Europe from Foundation of East Germany, its formation on 7 October 1949 until German reunification, its reunification with West Germany (FRG) on ...
in July 1990, replacing the
East German mark The East German mark ( ), commonly called the eastern mark ( ) in West Germany and after German reunification, reunification, was the currency of the East Germany, German Democratic Republic (East Germany). Its ISO 4217, ISO 4217 currency code w ...
(''Mark der DDR''), in preparation for unification on 3 October 1990. East German marks were exchanged for Deutsche Marks at a rate of 1:1 for the first M 4,000 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 The Union of Soviet Socialist Republics. (USSR), commonly known as the Soviet Union, was a List of former transcontinental countries#Since 1700, transcontinental country that spanned much of Eurasia from 1922 until Dissolution of the Soviet ...
to stop it. However, in late 1989 France extracted German commitment to the
Monetary Union A currency union (also known as monetary union) is an intergovernmental agreement that involves two or more states sharing the same currency. These states may not necessarily have any further integration (such as an economic and monetary union ...
in return for support for German reunification.


Stability

The German mark had a reputation as one of the world's most stable currencies; this was based on the
monetary policy Monetary policy is the policy adopted by the monetary authority of a nation to affect monetary and other financial conditions to accomplish broader objectives like high employment and price stability (normally interpreted as a low and stable rat ...
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 The European Central Bank (ECB) is the central component of the Eurosystem and the European System of Central Banks (ESCB) as well as one of seven institutions of the European Union. It is one of the world's Big Four (banking)#International ...
's present policy 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 The European Exchange Rate Mechanism (ERM II) is a system introduced by the European Economic Community on 1 January 1999 alongside the introduction of a single currency, the euro (replacing ERM 1 and the euro's predecessor, the ECU) as ...
. 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 in 1948 and 1949. From 1950, the inscription (Federal Republic of Germany) appeared on the coins. These coins were issued in denominations of 1pf, 2pf, 5pf, 10pf, and 50pf. The 1pf and 2pf coins were struck in bronze clad steel (although during some years the 2pf was issued in solid bronze) while 5pf and 10pf were brass clad steel and the 50-pfennig was in
cupronickel Cupronickel or copper–nickel (CuNi) is an alloy of copper with nickel, usually along with small quantities of other metals added for strength, such as iron and manganese. The copper content typically varies from 60 to 90 percent. ( Monel is a n ...
. In 1950, cupronickel DM1 coins were released, while a cupronickel DM2 and a .625 silver DM5 were released in 1951. Cupronickel replaced silver in the DM5 in 1975. The DM2 and DM5 coins have often been used for commemorative themes, though typically only the generic design for the DM5 is intended for circulation. Commemorative silver DM10 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 (1pf and 2pf) until adoption of the euro. Unlike other countries (such as Australia) there was no attempt or proposal suggested for the withdrawal of the 1pf and 2pf 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 Finland, officially the Republic of Finland, is a Nordic country in Northern Europe. It borders Sweden to the northwest, Norway to the north, and Russia to the east, with the Gulf of Bothnia to the west and the Gulf of Finland to the south, ...
or the
Netherlands , Terminology of the Low Countries, informally Holland, is a country in Northwestern Europe, with Caribbean Netherlands, overseas territories in the Caribbean. It is the largest of the four constituent countries of the Kingdom of the Nether ...
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 Legal tender is a form of money that Standard of deferred payment, courts of law are required to recognize as satisfactory payment in court for any monetary debt. Each jurisdiction determines what is legal tender, but essentially it is anything ...
but were rarely seen outside of collectors' circles. On 27 December 2000, the German government enacted a law authorizing the to issue, in 2001, a special .999 pure gold DM 1 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 (instead of ), as the was the issuing authority in this case. A total of one million gold DM 1 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 . The issue price varied by the dealer but averaged approximately US$165. 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 World War II or the Second World War (1 September 1939 – 2 September 1945) was a World war, global conflict between two coalitions: the Allies of World War II, Allies and the Axis powers. World War II by country, Nearly all of the wo ...
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 German euro coins have three separate designs for the three series of coins. The 1-cent, 2-cent and 5-cent coins were designed by , the design for the 10-cent, 20-cent and 50-cent coins were designed by and the 1- and 2-euro coins were done by ...
. Between 1 July 1990 (the currency union with East Germany) and 1 July 1991, East German coins in denominations up to 50 s 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 10pf coin was sometimes called a (compare: groat). Likewise, ('sixer') could refer to a coin of 5pf. Both colloquialisms refer to several pre-1871 currencies of the previously independent
states State most commonly refers to: * State (polity), a centralized political organization that regulates law and society within a territory **Sovereign state, a sovereign polity in international law, commonly referred to as a country **Nation state, a ...
(notably
Prussia Prussia (; ; Old Prussian: ''Prūsija'') was a Germans, German state centred on the North European Plain that originated from the 1525 secularization of the Prussia (region), Prussian part of the State of the Teutonic Order. For centuries, ...
), where a was subdivided into 12 s, hence half a into 6. After 1871, 12 old s would be converted into 10pf of the mark, hence 10pf coins inherited the name and 5pf coins inherited the name. Both usages are only regional and may not be understood in areas where a coin did not exist before 1871. In particular, the usage of is less widespread. In northern Germany the DM 5 coin used to be also called a , whereas in
Bavaria Bavaria, officially the Free State of Bavaria, is a States of Germany, state in the southeast of Germany. With an area of , it is the list of German states by area, largest German state by land area, comprising approximately 1/5 of the total l ...
the DM 2 coin was called and this expression is now used for the €2 coin in the region.


Banknotes

There were four series of German mark banknotes: * The first was issued in 1948 by the Allied military. There were denominations of DM, DM 1, DM 2, DM 5, DM 10, DM 20, DM 50 and DM 100, with two designs of DM 20 and DM 50. * The second series (BdL) was introduced in 1948 by the ''Bank deutscher Länder'', an institution of the western occupation government. The designs were similar to the
US Dollar The United States dollar (symbol: $; currency code: USD) is the official currency of the United States and several other countries. The Coinage Act of 1792 introduced the U.S. dollar at par with the Spanish silver dollar, divided it int ...
and
French franc The franc (; , ; currency sign, sign: F or Fr), also commonly distinguished as the (FF), was a currency of France. Between 1360 and 1641, it was the name of coins worth 1 livre tournois and it remained in common parlance as a term for this amoun ...
, as the job of designing and printing the different denominations was shared between the
Bank of France The Bank of France ( ) is the national central bank for France within the Eurosystem. It was the French central bank between 1800 and 1998, issuing the French franc. It does not translate its name to English, and thus calls itself ''Banque de F ...
and the American Bank Note Company. There were denominations of 5pf and 10pf, DM 5, DM 10, DM 20, DM 50 and DM 100 marks. The last of the banknotes (DM 5 and DM 10) were phased out by 31 July 1966. * The third series (I/Ia BBk) was introduced in 1960 by the
Bundesbank The Deutsche Bundesbank (, , colloquially Buba, sometimes alternatively abbreviated as BBk or DBB) is the national central bank for Germany within the Eurosystem. It was the German central bank from 1957 to 1998, issuing the Deutsche Mark (DM). ...
, depicting neutral symbols, paintings by the German painters, and buildings. There were denominations of DM 5, DM 10, DM 20, DM 50, DM 100, DM 500 and DM 1,000. The series ceased to be legal tender on 30 June 1995. * The fourth (BBk III/III a) was introduced in 1990 by the Bundesbank to counter advances in
forgery Forgery is a white-collar crime that generally consists of the false making or material alteration of a legal instrument with the specific mens rea, intent to wikt:defraud#English, defraud. Tampering with a certain legal instrument may be fo ...
technology. The notes depicted German artists and scientists together with symbols and tools of their trade. This series added a DM200 denomination, to decrease the use of DM 100 banknotes, which made up 54% of all circulating banknotes, and to fill the gap between the DM 100 and DM 500 denominations. In 1997–1998, new versions of DM 50, DM 100 and DM 200 were issued with improved security elements. The notes with a value greater than DM 200 were rarely seen. A reserve series (BBk II) was commissioned on 1 July 1960, consisting of DM 10, DM 20, DM 50 and DM 100 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 1 July 1963, consisting of DM 5, DM 10, DM 20, DM 50 and DM 100 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 Rhineland-Palatinate ( , ; ; ; ) is a western state of Germany. It covers and has about 4.05 million residents. It is the ninth largest and sixth most populous of the sixteen states. Mainz is the capital and largest city. Other cities are ...
, the rest was stored in Bundesbank's vault in
Frankfurt Frankfurt am Main () is the most populous city in the States of Germany, German state of Hesse. Its 773,068 inhabitants as of 2022 make it the List of cities in Germany by population, fifth-most populous city in Germany. Located in the forela ...
.


Banknotes of the third series (BBk I/Ia)

In 1957, with Bank deutscher Länder and the states' central banks merging to form the Bundesbank, new banknotes were being designed, as "Bank deutscher Länder" on the previous series was no longer correct. The previous series' notes had been made out of less durable paper and had a rather short life. While previously damaged notes could be replaced from reserve stocks, this stock was also coming to an end, necessitating a reprint. Typical security features at the time were guilloches, a multi-level head watermark and a security thread. Note numbers that fluoresced under UV light and green, yellow, and blue. 27 fluorescent fibers embedded in the paper appeared on most banknotes; however, some specimens without these features were in circulation. Starting in 1976, banknotes were equipped with machine-readable feature - a colorless inorganic oxide mixture applied to the security thread. Banknotes featuring that were designated BBk Ia within the Bundesbank. All banknotes of the third series bore the penalty for counterfeiting and forgery on the upper right corner of the reverse, from German penal code section 146: "''Wer Banknoten nachmacht oder verfälscht, oder nachgemachte oder verfälschte sich verschafft und in Verkehr bringt, wird mit Zuchthaus/Freiheitsstrafe nicht unter zwei Jahren bestraft.''" ("Who falsifies or counterfeits banknotes, or procures falsified or counterfeit banknotes and releases them into circulation, is liable to imprisonment for at least two years". The third series banknotes entered circulation on 10 February 1961, with the DM 20 note. DM 100 and DM 50 followed next year, and DM 5 and DM 10 in 1963. High-denomination DM 1000 and DM 500 followed in 1964 and 1965, respectively. The banknotes were printed exclusively in West Germany; in Bundesdruckerei in
West Berlin West Berlin ( or , ) was a political enclave which comprised the western part of Berlin from 1948 until 1990, during the Cold War. Although West Berlin lacked any sovereignty and was under military occupation until German reunification in 1 ...
and in
Giesecke+Devrient Giesecke may refer to: People: * Heinz-Eberhard Giesecke (1913–1991), German historian * Karl Ludwig Giesecke FRSE (1761–1833), German actor, librettist, polar explorer and mineralogist * Markus Giesecke (born 1979), German futsal player from R ...
in
Munich Munich is the capital and most populous city of Bavaria, Germany. As of 30 November 2024, its population was 1,604,384, making it the third-largest city in Germany after Berlin and Hamburg. Munich is the largest city in Germany that is no ...
. The third series banknotes ceased to be legal tender on 30 June 1995, when the fourth series notes had been in circulation for 3–5 years. There were a total of five issues of the third series, main differences being the dates, and signatures of the Presidents and Vice Presidents of Bundesbank:


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 Intaglio ( ; ) is the family of printing and printmaking techniques in which the image is incised into a surface and the incised line or sunken area holds the ink. It is the direct opposite of a relief print where the parts of the matrix that m ...
(viewing-angle dependent visibility as well as a
Braille Braille ( , ) is a Tactile alphabet, tactile writing system used by blindness, blind or visually impaired people. It can be read either on embossed paper or by using refreshable braille displays that connect to computers and smartphone device ...
representation of the notes denomination), colour-shifting ink (on the DM 500 and DM 1000 denominations), a see-through registration device and ultraviolet-visible security features. First to be issued were the DM 100 and DM 200 denominations on 1 October 1990 (although the banknote shows "
Frankfurt am Main Frankfurt am Main () is the most populous city in the States of Germany, German state of Hesse. Its 773,068 inhabitants as of 2022 make it the List of cities in Germany by population, fifth-most populous city in Germany. Located in the forela ...
, 2. Januar 1989"). The next denomination was DM 10 on 16 April 1991, followed by DM 50 on 30 September 1991. 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 DM 500, and DM 1000 denominations were rarely seen in circulation due to value and all 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, DM 100 and DM 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
euro banknotes Banknotes of the euro, the common currency of the eurozone (euro area members), have been in circulation since the first series (also called ''ES1'') was issued in 2002. They are issued by the national central banks of the Eurosystem or the Eur ...
), and the
EURion constellation The EURion constellation (also known as Omron rings or doughnuts) is a pattern of symbols incorporated into a number of secure documents such as banknotes, cheques, and ownership title certificate designs worldwide since about 1996. It is added ...
on the note's reverse. Furthermore, the colours were changed slightly to hamper counterfeiting.


Spelling and pronunciation

The German name of the currency is ''Deutsche Mark'' (, ); its plural form in
standard German Standard High German (SHG), less precisely Standard German or High German (, , or, in Switzerland, ), is the umbrella term for the standard language, standardized varieties of the German language, which are used in formal contexts and for commun ...
is the same as the singular. In German, the adjective "deutsche" (adjective for "German" in
feminine Femininity (also called womanliness) is a set of attributes, behaviors, and Gender roles, roles generally associated with women and girls. Femininity can be understood as Social construction of gender, socially constructed, and there is also s ...
singular Singular may refer to: * Singular, the grammatical number that denotes a unit quantity, as opposed to the plural and other forms * Singular or sounder, a group of boar, see List of animal names * Singular (band), a Thai jazz pop duo *'' Singula ...
nominative In grammar, the nominative case ( abbreviated ), subjective case, straight case, or upright case is one of the grammatical cases of a noun or other part of speech, which generally marks the subject of a verb, or (in Latin and formal variants of E ...
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 A loanword (also a loan word, loan-word) is a word at least partly assimilated from one language (the donor language) into another language (the recipient or target language), through the process of borrowing. Borrowing is a metaphorical term t ...
"Deutschmark" has a slightly different spelling and one syllable fewer (possibly due to the frequency of
silent e In English orthography, many words feature a silent (single, final, non-syllabic ‘e’), most commonly at the end of a word or morpheme. Typically it represents a vowel sound that was formerly pronounced, but became silent letter, silent in ...
in English, or due to English's lack of adjectival endings), and a plural form in ''-s''. In Germany and other German speaking countries, the currency's name was often abbreviated as ''D-Mark'' (, ) or simply ''Mark'' () 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'' was used either as
hypocoristic A hypocorism ( or ; from Ancient Greek ; sometimes also ''hypocoristic''), or pet name, is a name used to show affection for a person. It may be a diminutive form of a person's name, such as '' Izzy'' for Isabel or '' Bob'' for Robert, or it ...
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 Irony, in its broadest sense, is the juxtaposition of what, on the surface, appears to be the case with what is actually or expected to be the case. Originally a rhetorical device and literary technique, in modernity, modern times irony has a ...
undertone). The subdivision unit is spelled ''Pfennig'' (; ), which unlike ''Mark'' does have a commonly used plural form: ''Pfennige'' (), 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 United States dollar (Currency symbol, symbol: Dollar sign, $; ISO 4217, currency code: USD) is the official currency of the United States and International use of the U.S. dollar, several other countries. The Coinage Act of 1792 introdu ...
.


See also

*
Economy of Germany The economy of Germany is a highly developed social market economy. It has the largest national economy in Europe, the third-largest by nominal GDP in the world, and the sixth-largest by PPP-adjusted GDP. Due to a volatile currency exchange ...
* German adoption of the euro *
German euro coins German euro coins have three separate designs for the three series of coins. The 1-cent, 2-cent and 5-cent coins were designed by , the design for the 10-cent, 20-cent and 50-cent coins were designed by and the 1- and 2-euro coins were done by ...
*
German Papiermark The Papiermark (; 'paper mark') was a derisive term for the Mark (sign: ℳ︁) after it went off the gold standard, and most specifically with the era of hyperinflation in Germany of 1922 and 1923. Formally, the same German mark was used fro ...
and
Notgeld (German language, German for 'emergency money' or 'necessity money') is money issued by an institution in a time of economic or political crisis. The issuing institution is usually one without official sanction from the central government. This ...
*
German Reichsmark The (; sign: ℛ︁ℳ︁; abbreviation: RM) was the currency of Germany from 1924 until the fall of Nazi Germany in 1945, and in the American, British and French occupied zones of Germany, until 20 June 1948. The Reichsmark was then replaced ...
*
List of commemorative coins of the Federal Republic of Germany This is a list of commemorative coins issued by the Federal Republic of Germany. For regular coins, see Deutsche Mark and German euro coins. Those prior to 2002 were denominated in Deutsche Marks; subsequent ones have been denominated in euros. ...


References


External links


Coins of the Third Reich

Overview of German Mark from BBC online


* ttp://www.bis-ans-ende-der-welt.net/Deutschland-B-En.htm Historical banknotes of Germanyincludin
East German banknotes
{{DEFAULTSORT:Deutsche Mark Currencies of Germany Economy of West Germany Modern obsolete currencies Currencies replaced by the euro Currencies of Europe 1948 establishments in Germany 2002 disestablishments in Germany Currencies introduced in 1948 Currency symbols