2001 The Mark gold currency, which was established in 1871 (with the minting of the 20 Mark gold piece) as the money of the newly formed German Reich, was split into 100 Pfennig = 1 Mark. Until 2001, this division was maintained across all German currencies.
The Pfund is the unit of weight of the German mark. It was defined as 12 grams, but this was changed in 1969 to 10 grams. The name comes from the Latin paulus, meaning "pound", because 10 pounds of metal were required to make a Pfund.
In English and American dollars and British pences, 1 pound equals 2.2046 kilograms. In Swiss francs, 1 pound equals 0.9076 kilogram. So, the Pfund contains exactly 110 milligrams of silver.
The German mark was replaced by the euro on January 1, 2002. However, since many Germans still have some marks in their possession, the government has announced that they will continue to be legal tender until December 31, 2004.
During World War II, the Nazis banned the use of gold for coins, instead requiring that silver be used instead at the rate of one gram per $10,000 of face value. This meant that if you had $10,000 worth of goods, you would need 10 grams of silver.
On January 1, 1999, the German mark was replaced by the euro as an accounting currency, at a conversion rate of 1.95583 marks per euro. This conversion rate was fixed until February 2, 2002, when it was increased to 2.45 marks per euro.
The German mark had been effectively replaced as legal tender on October 31, 1998. However, because of its use as an accounting currency, some businesses and organizations continued to accept marks after that date.
It was originally produced under Allied occupation in 1948 to replace the Reichsmark, and it served as the official currency of the Federal Republic of Germany from its inception the following year until the euro's introduction. In English, it is usually referred to as the "Deutschmark" (/'doItSma:rk/); however, this word is not used in Germany. Instead, it is called der Euro ("the Euro") or simply das Geld ("the money").
The Deutsche Mark was chosen by the Allied Control Council to serve as the new currency after World War II because it was easily convertible to other currencies, notably the British Pound. It also had the advantage of being fully backed by assets of the German government. The Deutsche Mark was initially valued at 1 British Pound, but over time it lost value due to inflation. It was finally replaced by the Euro on January 1, 1999.
After German reunification in 1990, a single currency was introduced at the same time as four independent states were united into one country. Since there was no agreement on which currency should be adopted by the federal government, it was decided that the Deutsche Mark would continue in use by Austria and East Germany while West Germany would use the French Franc instead. On August 31, 1993, the last Deutsche Mark was exchanged for an Austrian Schilling in what is considered a historic conversion rate. However, since Austria uses the Euro as its currency, all Austrian banks now operate using the Euro as well.
Yes. On January 1, 2002, Germany formally adopted the euro, and the German mark "immediately ceased to be legal money," according to Furhmans. Individuals and organizations can still exchange their marks for euros at a rate of 1.96 marks per euro at government banks. There is also an online site where people can swap marks.
The Deutsche Bank will continue to accept marks until February 28, 2002. After this date, it will no longer accept marks unless they are turned in as cash or traded in for euros at a rate of 1.96 marks per euro. The bank will not receive marks after this date even if they are worth more than 2.48 euros.
Individuals who have marks that they want to turn in can do so at any one of the country's federal banking institutions. These include DZ Bank, Commerzbank, Deutsche Bank, Hamburg-based HSH Nordbank, Hypo Alpe-Adria-Bank Vienna, and WestLB. At these banks, you can change up to 10,000 marks into euros. If you have more marks than this, you can divide them up into smaller amounts to avoid a transaction fee.
To find out about the current value of the mark, check online currency calculators. Forex markets will also offer a guide to the mark's price.
The Deutsche Mark was officially introduced in the three western "Besatzungszonen," the allied occupied zones of Germany, with the so-called "Wahrungsreform" (currency reform) in 1948 to prepare the country for a new currency and economic system, as well as to put an end to the flourishing black market. The DM became the only legal tender in these regions.
However, the German government did not have any control over the other parts of Germany where there was no official mark zone. Thus, people started using Deutschmarks all over Germany, which led to considerable inflation. In addition, there were serious problems with the exchange rate: because the DM was highly valued compared with the US dollar, imports became extremely expensive for Germany. Finally, in 1953, the Western Zones were dissolved, with France and Italy withdrawing themselves from the plan. Since those countries did not want to accept Deutschmarks, their governments decided to abandon the new currency altogether.
In conclusion, the introduction of the Deutsche Mark in Germany was part of a larger process called "De-Americanization" that also included the withdrawal of American troops after World War II. At the time, West Germany was still recovering from the damage caused by the war and needed foreign investment to rebuild its economy. So, they invited Americans to come to Germany if they wanted to work in the growing service industry or set up small businesses, for example.
The majority of Germany's reparations payments were funded by loans from American banks, which the beneficiaries used to repay debts from the US Treasury. Germany paid 19 billion goldmarks in reparations and got 27 billion goldmarks in loans from New York bankers and others between 1919 and 1932. The total cost of the war to Germany was around 90 billion goldmarks.
At the end of World War I, Germany was in debt to the United States for about $3 billion (or 3 million gold marks). Of this amount, $250 million was owed to J.P. Morgan & Co. alone. In addition, German citizens had taken out many more foreign loans than the country's economy could afford. The situation was made worse when several European countries tried to collect their debts from Germany - even though it was not responsible for the war.
In order to pay off these debts, develop its own industry, and remain competitive after losing nearly one third of its territory, Germany needed to export much more than it imported. But due to the global recession of 1929-1932, there were very few buyers for its products. The only solution was for Germany to create its own currency, called the Deutsche Mark, and use it as payment for its exports to fund its imports.
This scheme worked for a while, but in 1931, with the world economy in crisis, Germany defaulted on its loans.