Danzig gulden

For an earlier currency issued in Danzig, see Danzig Thaler.

The Gulden was the currency of Free City of Danzig (German: Freie Stadt Danzig; Polish: Wolne Miasto Gdańsk) between 1923 and 1939. It was divided into 100 Pfennige.

History

Until 1923, Danzig used the German papiermark and issued several local 'emergency notes'. Inflation during 1922–23 averaged roughly 2,440% per month. In July 1923 it was announced that a new and independent currency (the gulden) was being established with the approval of the League of Nations finance committee to replace the German mark. The Gulden was introduced at a value of 25 Gulden = 1 pound sterling.

Incorporation into Nazi Germany

Danzig was annexed by Nazi Germany on 1 September 1939, the day the invasion of Poland had begun On the same day Reichsmark coins and notes were declared legal tender alongside the Danziger gulden, with 1 gulden being equal to 0,70 Reichsmark. This was a favourable exchange rate for inhabitants of Danzig, since the actual exchange rate was around 0,47 Reichsmark per gulden . To prevent abuse on 7 September the import of gulden coins and notes into the territory of the former free city was prohibited. Bank assets were however converted at the market rate of 0,47 reichsmark per gulden.