The
East German mark commonly called the
eastern mark (
Ostmark in West Germany and after the
reunificationGerman reunification is the process in which the German Democratic Republic joined the Federal Republic of Germany , and Berlin was united into a single city-state. The start of this process is commonly referred to by former citizens of the GDR as die Wende...
), in East Germany only
Mark, was the
currencyIn economics, the term currency can refer either to a particular currency, for example the US dollar, or to the coins and banknotes of a particular currency, which comprise the physical aspects of a nation's money supply...
of the
German Democratic RepublicThe German Democratic Republic was a Communist state that originated from the Soviet Zone of occupied Germany and the Soviet sector of occupied Berlin...
(East Germany). Its
ISO 4217 currency codeISO 4217 is the international standard describing three-letter codes to define the names of currencies established by the International Organization for Standardization...
was
DDM. The currency was known officially as the
Deutsche Mark from 1948 to 1964,
Mark der Deutschen Notenbank from 1964 to 1967, and from 1968 to 1990 as the
Mark der DDR (Mark of the GDR); it was referred to colloquially as simply the
Mark. It was divided into 100 Pfennig (Pf).
1948
On 21 June 1948, the
ReichsmarkThe Reichsmark was the currency in Germany from 1924 until June 20, 1948. The Reichsmark was subdivided into 100 Reichspfennig.-History:...
and the
RentenmarkThe Rentenmark was a currency issued on 15 November 1923 to stop the hyperinflation of 1922 and 1923 in Germany. It was subdivided into 100 Rentenpfennig.-History:...
were abolished in the western occupation zones and replaced with the
Deutsche Mark issued by the
Bank deutscher LänderThe Bank deutscher Länder , abbreviation BdL, was the forerunner of the Deutsche Bundesbank. It was founded on 1 March 1948....
(later the Deutsche Bundesbank). Because the
Reichsmark was still legal tender in the
Soviet occupation zoneThe Soviet Occupation Zone was the area of central Germany occupied by the Soviet Union from 1945 on, at the end of World War II...
, the currency flooded into the east from the west, where it was worthless. This caused sudden
inflationIn economics, inflation is a rise in the general level of prices of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services; consequently, inflation is also an erosion in the purchasing power of money – a loss of real...
, which caused privately held cash in the Soviet zone to become worthless overnight. As an emergency measure, on 23 June 1948, the
SovietsThe Union of Soviet Socialist Republics was a constitutionally socialist state that existed in Eurasia from 1922 to 1991. The name is a translation of the , tr. Soyuz Sovetskikh Sotsialisticheskikh Respublik, abbreviated СССР, SSSR. The common short name is Soviet Union, from , Sovetskiy Soyuz...
affixed adhesive coupons to those
Reichsmark and
Rentenmark banknotes for which the owners could prove their origin, up to a limit of 70
Reichsmark per person. Only such banknotes could be exchanged when the
Deutsche Notenbank (the East German counterpart of the
Bundesbank) issued the new
Deutsche Mark with the subsequent currency reform.
On 24 July 1948, a completely new series of banknotes were issued. It maintained the official name
Deutsche Mark von der Deutschen Notenbank until 1964, but it was known, especially in the west, as the
Ostmark, or East Mark.
1960s
From 1964 to 1967, the East German mark was officially designated as the
Mark der Deutschen Notenbank (MDN). With the constitutional amendments of 1968 and 1974, the leadership of East Germany moved away from the original goal of a unified Germany, using the phrase "... of the GDR" where earlier they would simply have said "German ...". In this way the name of the currency was changed from MDN to
Mark der Deutschen Demokratischen Republik (Mark der DDR) (M), or "Mark of the GDR", and the name of the state bank from
Deutsche Notenbank to
Staatsbank der DDRThe State Bank of the GDR was the central bank of the German Democratic Republic. It was established on 1 January 1968 from the Deutsche Notenbank and took over the majority of the same tasks.The State Bank of the G.D.R...
. Coins minted prior to the renaming, with the legend
Deutsche Mark (i.e., in 1 and 2 DM denominations), continued to circulate for several years, but they were gradually replaced by the early 1980s by coins with the legend
Mark.
International exchange
The East German mark was officially valued by the East German government at parity with the (West German)
Deutsche Mark, but it was never freely convertible. Beginning in 1964, the East German government instituted a
Zwangsumtausch (forced exchange) (or
Mindestumtausch — minimum exchange), whereby most visitors from non-socialist foreign countries were required to exchange a set amount of
Deutsche Mark (or other
hard currenciesHard currency or strong currency, in economics, refers to a globally traded currency that can serve as a reliable and stable store of value...
) for East German marks at the ratio of one
Deutsche Mark to one East German mark for every day of their stay. Starting on 13 October 1980, Western visitors to the GDR (except from Finland) were required to exchange a minimum of 25
Deutsche Mark for East German marks per day. Some exceptions were authorized: for example, tourists who booked hotel stays in the GDR that were paid in hard currency were exempted from the minimum exchange requirements. (Of course, such accommodation charges almost always exceeded the 25 mark daily exchange threshold.) At other times, West Berliners, retirees, children, and youth were granted either exemptions or were authorized reduced minimum exchange amounts. Members of the
Western AlliedThe term Western Allies refers to a certain political and geographic grouping among the Allied Powers of the Second World War. It generally includes the United Kingdom and British Commonwealth, the United States, France and various other European and Latin American countries, but excludes China,...
military forces stationed in
West BerlinWest Berlin was the name given to the western part of Berlin between 1949 and 1990. It consisted of the American, British, and French occupation sectors established in 1945. It was in many ways integrated with, although legally not a part of, West Germany...
were also exempt from these rules when visiting
East BerlinEast Berlin was the name given to the eastern part of Berlin between 1949 and 1990. It consisted of the Soviet sector of Berlin that was established in 1945. The American, British and French sectors became West Berlin, a de facto part of West Germany. Despite its status as part of an occupied city,...
, in part because the Western Allies did not recognize the authority of the GDR to regulate the activities of their military personnel in East Berlin; only the Soviet Union was considered competent to do so.
On the black market, the exchange rate was about 5 to 10 M to one DM. In the mid-1980s, one could easily visit foreign currency exchange offices in West Berlin and purchase East German banknotes (in 50 and 100 mark denominations) at the rate of 5 (East) = 1 (West). However, the GDR forbade the import or export of East German currency (as well as the currencies of other socialist countries) into or out of the GDR, and penalties for violation ranged from confiscation of smuggled currency to imprisonment. The East German mark could not be spent in
IntershopIntershop was a chain of government-run retail stores in the German Democratic Republic in which only hard currencies could be used to purchase high-quality goods. The East German mark was not accepted as payment...
s to acquire Western consumer goods; only hard currencies or
Forum checkForum checks were a form of hard currency in East Germany. By law all East Germans had to convert any Deutsche Marks they possessed into Forum checks at the state bank. A Forum check mark was worth 1 Deutsche Mark. Forum checks, as well as western currencies, were accepted in Intershops as...
s were accepted.
Adoption of the West German deutsche Mark
Upon adoption of the
deutsche Mark in East Germany on 1 July 1990, the East German mark was converted at par for wages, prices and basic savings (up to a limit of 4000 Mark per person, except for children (less) and pensioners (more)). Larger amounts of savings, company debts and housing loans were converted at a 2:1 rate whilst so-called "speculative money", acquired shortly before unification, was converted at a rate of 3:1. This inflated exchange rate was intended as a massive subsidy for eastern Germany by the government of the Federal Republic of Germany, and remains controversial among economists, with some arguing that the exchange of currency was the most practical way of quickly unifying the German economy, and others arguing that the exchange increased the disruption of
German unificationGerman reunification is the process in which the German Democratic Republic joined the Federal Republic of Germany , and Berlin was united into a single city-state. The start of this process is commonly referred to by former citizens of the GDR as die Wende...
beyond what they otherwise would be, by among other things, making eastern German industries uncompetitive.
Destruction of East German notes and coins
With the Monetary, Economic and Social Union of Germany on 1 July 1990 (in preparation for
German reunificationGerman reunification is the process in which the German Democratic Republic joined the Federal Republic of Germany , and Berlin was united into a single city-state. The start of this process is commonly referred to by former citizens of the GDR as die Wende...
on 3 October 1990) the Deutsche Mark became the currency of East Germany. Around 4500 tonnes of now-obsolete East German coins were melted down at the Rackwitz metal works in 1990. Most of the paper money was placed into storage in 1990/91, but destroyed in 2002 following a theft. Many examples of notes and coins, however, remain in private hands.
Almost all the paper money of the GDR (about 100 billion Mark, or 620 million banknotes with a volume of 4,500 m
3 (160,000 cu ft, about 300 boxcars)), including all the currency collected at the time of the monetary union and the never-used 200 and 500 Mark banknotes, was placed into storage in 1990 and 1991 in two 300 m (1000 ft) long sandstone caverns in the Thekenberge near
HalberstadtHalberstadt is a town in the German state of Saxony-Anhalt and the capital of the district of Harz. It is located on the German Framework Road....
. In total, 3,000 tons of banknotes, passbooks, and checks were stored there, having been brought by military convoy from the
Staatsbank der DDR in Berlin. The currency became the property of the
Kreditanstalt für WiederaufbauKFW may refer to:*Keith Fullerton Whitman, an American musician*KfW or Kreditanstalt für Wiederaufbau, a German public-sector financial institution...
(KfW) in 1994 through its merger with the
Staatsbank Berlin (the post-reunification name for the
Staatsbank der DDR). The 13 km (8 mile) tunnel system had been built by prisoners of war at the end of
World War IIWorld War II, or the Second World War , was a global military conflict which involved a majority of the world's nations, including all great powers, organized into two opposing military alliances: the Allies and the Axis...
, and used by the
National People's ArmyThe National People’s Army was the military of the German Democratic Republic. Since East Germany was at the frontline of the Cold War, the GDR's military was considered to be the most advanced in the whole Warsaw Pact, excluding the Soviet Union...
under the code name "Malachit", or camp complex KL-12 NVA-Nr.16/630. It was the bunker with the largest floor space, and was used for the safeguarding of devices and munitions that would be needed for war. The money was protected from theft by two metre thick concrete walls and heavy steel doors. For cost reasons, the money was left to rot under the natural humidity, but it was further covered with gravel.
In July 2001, it was discovered that two Halberstadt residents had gained entry to the tunnel system through an unsecured opening and made off with numerous banknotes. The two, aged 24 and 26 were convicted of the crime and sentenced to four months in prison and three years of probation. Furthermore, they had to pay 120 € (about US$164) to a non-profit organisation. The appearance among collectors of uncirculated 200 and 500 Mark notes, and of the never-issued military currency, is attributed to this theft. Because of the theft and the slowness of the rotting, the KfW then decided to burn the old currency. Between April and June 2002, 298 containers of the currency remains were burned in an incinerator (6 containers per day) along with household refuse. The last container was burned on 25 June 2002.
Coins
The first issue of coins in 1948 consisted of aluminium 1, 5 and 10 Pfennig denominations, with aluminium-bronze 50 Pfennig coins added in 1950. Aluminium 1 Mark, 2 Mark and 50 Pfennig pieces were released for circulation in 1956, 1957 and 1958, respectively. In 1969, brass 20 Pfennig coins were introduced, with nickel-bronze (later cupro-nickel) 5 Mark coins issued from 1968. For a period of several months following the July 1990 adoption of the
Deutsche Mark, small-value GDR coinage (up to 50 Pfennig) continued to circulate in the former GDR as legal tender, because the
Bundesbank could not deliver enough small coins to adequately replace the former GDR coinage in a timely fashion.
Official coins of the German Democratic Republic during the 1970s and 1980s
| Front |
Back |
Material |
Weight |
Size |
| 1 Pfennig |
 |
 |
aluminium |
0.75 gram
(0.026 ounce) |
17 millimeter
(0.669 inch) |
| 5 Pfennig |
 |
 |
aluminium |
1.10 gram
(0.039 ounce) |
19 millimeter
(0.748 inch) |
| 10 Pfennig |
 |
 |
aluminium |
1.50 gram
(0.053 ounce) |
21 millimeter
(0.827 inch) |
| 20 Pfennig |
 |
 |
brass |
5.4 gram
(0.19 ounce) |
22.2 millimeter
(0.874 inch) |
| 50 Pfennig |
 |
 |
aluminium |
2.0 gram
(0.071 ounce) |
23 millimeter
(0.906 inch) |
| 1 Mark |
 |
 |
aluminium |
2.5 gram
(0.088 ounce) |
25 millimeter
(0.984 inch) |
| 2 Mark |
 |
|
aluminium |
3.0 gram
(0.106 ounce) |
27 millimeter
(1.603 inch) |
Commemorative coins
Commemorative Coins of the German Democratic Republic
| Front |
Back |
5 Mark
Commemorative Coin to the 20th Anniversary of the GDR |
 |
 |
There were 123 commemorative coins all together, which had a nominal value of 5, 10 or 20 Mark. The coins were released because of various anniversaries or special events. Silver, Copper/Nickel/Zinc (German Silver/
Nickel silverNickel silver is a metal alloy of copper with nickel and often but not always zinc. The usual formulation is 60% / 20% / 20% Copper / Nickel / Zinc It is named for its silvery appearance, but contains no elemental silver unless plated...
) or other alloys were used for the coins. A complete list of all released commemorative coins can be found in the "
Liste der Gedenkmünzen der DDR". Some of the commemorative coins were produced in very large volumes, especially the one that is shown above. The high volume caused those coins to enter circulation, because they were of little to no value for collectors.
Banknotes
| Heading |
Image |
Details |
| Reissue of pre-1948 banknotes |
|
Old Rentenmark and Reichsmark notes then in circulation in the Soviet occupation zone had adhesive stamps affixed in June 1948 to extend their validity while new banknotes were being printed (see Currency reform above). These notes were issued in denominations of 1, 2, 5, 10, 20, 50 and 100 Deutsche Mark. Colloquially, these reissued banknotes were referred to as Klebemark ("sticker marks") or Kuponmark ("coupon marks"). |
| Series 1948 DM banknotes |
|
The reissued Reichsmark and Rentenmark banknotes with adhesive stamps were replaced by newly-designed banknotes on 24 July 1948, in denominations of 50 Deutsche Pfennig, 1, 2, 5, 10, 20, 50, 100, and 1000 Deutsche Mark von der Deutschen Notenbank (DM). |
| Series 1955 DM banknotes |
|
A second issue of 1955 contained the denominations 5, 10, 20, 50 and 100 Deutsche Mark von der Deutschen Notenbank. |
| Series 1964 MDN banknotes |
|
In 1964, the government issued a new series of banknotes in denominations 5, 10, 20, 50 and 100 Mark der Deutschen Notenbank (MDN). Upon their issuance, the Series 1948 and 1955 banknotes were withdrawn from circulation. |
| Series 1971/1975 M banknotes |
|
The final series of East German banknotes carried dates of 1971 or 1975 and were issued in denominations of 5, 10, 20, 50 and 100 Mark der DDR (M). Upon their issuance, the Series 1964 MDN banknotes were gradually withdrawn from circulation. The 5 MDN banknote was the last to be withdrawn, in 1981.
|
| 5-mark notes, Series 1975 |
|
On the violet 5-Mark note is a picture of Thomas Müntzer, an early ReformationThe Protestant Reformation was a Christian reform movement in Europe which is generally deemed to have begun with Martin Luther's Ninety-Five Theses in 1517 although a number of precursors such as Jan Hus predate that event...
-era German pastorThe term pastor usually refers to an ordained person within a Christian church. In some countries the term is more usually used in traditional Protestant churches but is also used in reference to priests and bishops within the Roman Catholic, Eastern Orthodox, and Oriental Orthodox churches. The...
who was a rebel leader during the Peasants' WarThe Peasants' War was a popular revolt that took place in Europe during 1524-1525...
. The reverse shows several harvesting machines, which was meant to highlight the importance of agricultureAgriculture is the production of food and goods through farming and forestry. Agriculture was the key development that led to the rise of human civilization, with the husbandry of domesticated animals and plants creating food surpluses that enabled the development of more densely populated and...
in the "Workers and Farmers State" (Arbeiter- und Bauernstaat) that the GDR proclaimed itself to be.
|
| 10-mark notes, Series 1971 |
|
On the orange 10-Mark note is a picture of Clara Zetkin Clara Zetkin was an influential socialist German politician and a fighter for women's rights. Until 1917, she was active in the Social Democratic Party of Germany, then she joined the Independent Social Democratic Party of Germany and its far-left wing, the Spartacist League; this later became...
, an early German Communist and women's rightsThe term women's rights refers to freedoms and entitlements of women and girls of all ages. These rights may or may not be institutionalized, ignored or suppressed by law, local custom, and behavior in a particular society...
advocate. The reverse shows a female engineer sitting at a control console inside the Rheinsberg Nuclear Power PlantThe Nuclear power station Rheinsberg followed the Rossendorfer research reactor to become the first power producing nuclear reactor in East Germany. It was built close to the city of Rheinsberg on the Stechlinsee...
, which has been put into operation in 1966.
|
| 20-mark notes, Series 1975 |
|
On the green 20-Mark note is a picture of the author Johann Wolfgang von GoetheJohann Wolfgang von Goethe was a German writer and polymath. Goethe's works span the fields of poetry, drama, literature, theology, philosophy, humanism and science. Goethe's magnum opus, lauded as one of the peaks of world literature, is the two-part drama Faust...
. The reverse shows several young children exiting a school, meant to emphasize the importance of education in the GDR.
|
| 50-mark notes, Series 1971 |
|
On the red 50-Mark note is a picture of Friedrich EngelsFriedrich Engels was a German social scientist, author, political theorist, philosopher, and father of communist theory, alongside Karl Marx. Together they produced The Communist Manifesto in 1848...
, the co-founder of Marxist theory. The reverse shows an industrial complex like those in the PCK Raffinerie in SchwedtSchwedt is a city in Brandenburg, Germany. It is the largest city of the district Uckermark near the Oder river on the border with Poland....
. The confusion of pipes and smokestacks in the chemical plants and power stations highlighted the importance of industry in the GDR.
|
| 100-mark notes, Series 1975 |
|
The highest valued and best known of the notes distributed by the Staatsbank der DDR was the 100-Mark denomination. The blue note shows Karl MarxKarl Heinrich Marx was a Germanphilosopher, political economist, historian, political theorist, sociologist, communist and revolutionary, whose ideas are credited as the foundation of modern communism...
on the front, and the back displays the Palast der RepublikThe Palace of the Republic was a building in Berlin, on the bank of the River Spree between Schloßplatz and the Lustgarten . It served primarily as the seat of the East German parliament, the Volkskammer, but it also housed two large auditoria, art galleries, a theatre, restaurants and a bowling...
as seen from the Unter den LindenUnter den Linden is a boulevard in the center of Berlin, the capital of Germany. It is named for its linden trees that line the grassed pedestrian mall between two carriageways...
boulevard in East Berlin. In the background, the Berlin TV towerThe Fernsehturm is a television tower in the city centre of Berlin, Germany. Close to Alexanderplatz and part of the World Federation of Great Towers , the tower was constructed between 1965 and 1969 by the former German Democratic Republic administration who intended it as a symbol of Berlin,...
, the red city hall (Rathaus), and the ZeughausThe Zeughaus of Berlin is the oldest structure on the Unter den Linden. It was founded by the Brandenburg Elector Frederick III and erected between 1695 and 1730 in the baroque style, to be used as an artillery arsenal...
(Arsenal) can be seen. The combination of science, politics, business, and people was intended to honor the socialist system and to show the GDR as a progressive and modern country.
|
| 200- and 500-mark notes, Series 1985 |
|
The Staatsbank der DDR (State Bank of the GDR) had planned to issue 200- and 500-Mark notes. The notes were, in fact, printed in 1971 and in 1984 as a preparation, but were never circulated. A few examples are held by collectors.
These notes differed from the lower-denomination notes in that they did not have a personality on the obverse. The 200-Mark note had on its front a family with two children in front of a modern GDR high-rise apartment building. The back pictured a schoolyard with eight children and a teacher. The watermark was a dove of peace.
On the 500-Mark note, the front showed the coat-of-arms of the GDR (hammer and a pair of compasses in a wreath), while the back showed the State Council (StaatsratThe State Council of the German Democratic Republic was officially the highest organ of the German Democratic Republic, and for many years the collective president of the country , which was created by the law concerning the formation of the Council of State dated 12 September 1960 as a follow-up to...
) building of the GDR in Berlin.
|
East German military currency
In 1955, East Germany printed special military banknotes, which were never circulated. They were similar to the series of 1948 banknotes, in denominations from 5 to 100 Mark, along with a handstamp for state coats of arms or "Sample Note". Preparations were made to introduce them in 1980, but they were never carried out. They were intended to be used in international missions of the
National People's ArmyThe National People’s Army was the military of the German Democratic Republic. Since East Germany was at the frontline of the Cold War, the GDR's military was considered to be the most advanced in the whole Warsaw Pact, excluding the Soviet Union...
(NVA)..
Further reading
Jonathan R. Zatlin,
The Currency of Socialism — Money and Political Culture in East Germany. Cambridge University Press 2007 ISBN 0521869560
External links