What is the German Mark?
The German mark is the previous monetary unit of Germany in the eleventh century.
It was defined that this monetary unit weighed about eight ounces and was more used at the time than gold and silver in the accounting units that were widely circulated during the accounting units in the Middle Ages, specifically when paying large amounts, that Silver marks of small size and poor quality were smelted until their silver weights were sealed and purified.
These coins were called the usual marks.
During the nineteenth century, coins carried a common sign within Germany and differed between countries and of them, but in most cases, the gold sign was adopted, and after the First World War, the pure German unity weakened, which resulted in great inflation and instability of the currency and at this time the dollar became The American mark is equivalent to 4.2 billion marks, and during the Nazi period in Germany, which is from 1933 to 1945, the German mark was the official monetary unit in Germany and the currency mark was the swastika
In 1948, the German Mark advanced until it reached West Germany and then continued to develop until it became one of the leading currencies around the world. It also became in the position of the dollar and the pound sterling within the global and international markets. Therefore, in 1990, the German Mark became the official and unified currency of Germany, but the currencies within East Germany is old and were replaced by the currency of West Germany, which is the German mark, during 2002 the German mark was no longer the official currency inside Germany, but the official process of the country became the euro.
Therefore, the German mark is the official German currency from 1948 to 2002 and was replaced by the euro currency, and the currency of the German mark was symbolized by the symbol D. Within the forex markets it is the DEM, and during the existence of the German mark, the forms of currencies were banknotes, the rentier mark, and the Reich mark. German Federal Bank.
Germany's new currency
The euro is the official currency within Germany as it is a member of the European Union, which indicates that the euro currency refers to the currency union between the member states of the European Union, which adopted the euro currency as the official and only currency in Germany.
Therefore, the European Central Bank’s Board of Directors took decisions on the interest rate for the euro currency.
German currency before the euro
During the beginning of the First World War, the official currency of Germany was the Papiermark, which was equivalent to 100 Fenig, but after the collapse of the First World War, the name of the official currency was changed to the Rentenmark, and this was in 1923, but a year later, in 1924, the name of the currency was changed again And its name became Reichsmark, and in 1948 the official currency of the country was the Deutsche Mark, and until 2002, the official currency was the euro.
The German Mark and Its Heritage
The Deutschmark coin and banknote continued to circulate in Germany until 2002 and before that, it was taken out of circulation, but it stopped, but the German Central Bank continues to convert or replace the German mark with the euro, and the Deutschmark was previously one of the most stable currencies next to other European currencies until The German Mark appeared after World War II in 1948, but the currency of the Reich continued to be used within the Western occupation zones.
But after the end of World War I, the support for the currency of the Reich ended until the currency of the German Reich actually collapsed, at the same time as the German economy collapsed, and then most transactions were done through the use of the barter system, so the Federal Republic of Germany, known as West Germany, used the German Mark in In 1949 and then the recovery within the German economy that led to hyperinflation after the end of the war period took place
It is known that not all European countries use the euro as their official currency, such as Poland, other than the German Democratic Republic, known as East Germany, but after the unification of Germany in 1990, the German mark became a common currency and the German mark was changed to the euro currency (EUR) in 1999 Germany did not use the German mark and the euro at the same time.
What are the secrets of the German Mark?
The German mark is the main currency inside Germany before the euro. One of its biggest secrets is its rapid spread, which made it help to stabilize trade transactions.
The euro is the official currency after the German mark inside the European Union since 1999, and coins and paper currencies appeared in the country since the date of the 1st of the month. January of 2002 On the date of February 28, 2002, the euro became the official and only currency within more than 12 countries of the European Union, which made other additional countries use the euro currency, which became symbolized by the symbol € and during the Maastricht Treaty in 1991, an agreement signed Among the 12 member states within the European Union and they are
- United kingdom.
- France.
- Germany.
- Ireland.
- Italia.
- Belgium.
- Denmark.
- Holland.
- Spain.
- Portugal.
- Greece.
- Luxembourg.
This agreement included the establishment of an economic and monetary union that works to carry out the joint exchange through the euro currency, but after setting strict laws for the transfer of the euro currency to participate in the European Monetary Union, and among these strict conditions is the exchange annually at a rate not exceeding 3% of GDP For the country, the debt during one year should be less than 60% of the GDP, there should be stability in the exchange rate, and the inflation rates should not exceed 1.5% of the three lowest inflation rates in the European Union, and the long-term inflation rate should be within 2%. Italy and Belgium are in debt of more than 60%, but the executive section of the European Union contributed to helping them get rid of the debt by reducing it.
After this European Union, the European currency, the euro, was a booster for trade against other European currencies, and this eliminated fluctuations in other currencies and lowered prices.
Indeed, in 2007, Slovenia became the first country to adopt the euro currency, and then there was financial stability after the European Union in 2004 then Malta and Cyprus adopted the euro currency in 2008, then Slovakia in 2009, Estonia in 2011, Latvia in 2014 and Lithuania in 2015 and thus all these countries have the official currency in the euro in addition to some countries outside the European Union such as Andorra and Montenegro Kosovo and San Marino are known as the participating countries of the European Union or the Eurozone.