East German mark

The East German mark (German:  Mark der DDR ) commonly called the eastern mark ( Ostmark  in West Germany and after the reunification), in East Germany only Mark, was the currency of the German Democratic Republic (East Germany). Its ISO 4217 currency code 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).

History

1948

On 18 June 1948 a currency reform was announced for the western zones. Subsequently on 20 June 1948, the Reichsmark and the Rentenmark were abolished in the western occupation zones and replaced with the Deutsche Mark issued by the Bank deutscher Länder (later the Deutsche Bundesbank). Because the Reichsmark was still legal tender in the Soviet occupation zone, the currency flooded into the east from the west, where it was worthless. This caused sudden inflation, which caused privately held cash in the Soviet zone to become worthless overnight. As an emergency measure, many thousands of employees in the district offices started to affix 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.

East Germany

East Germany, formally the German Democratic Republic or GDR (German: Deutsche Demokratische Republik, ([ˈdɔʏtʃə demoˈkʀaːtɪʃə ʀepuˈbliːk]) or DDR), was a state in the Eastern Bloc during the Cold War period. From 1949 to 1990, it administered the region of Germany that was occupied by Soviet forces at the end of World War II—the Soviet Occupation Zone of the Potsdam Agreement, bounded on the east by the Oder–Neisse line. The Soviet zone surrounded West Berlin, but did not include it; as a result, West Berlin remained outside the jurisdiction of the GDR.

The German Democratic Republic was established in the Soviet Zone, while the Federal Republic was established in the three western zones. The East was often described as a satellite state of the Soviet Union. Soviet occupation authorities began transferring administrative responsibility to German communist leaders in 1948, and the GDR began to function as a state on 7 October 1949. Soviet forces, however, remained in the country throughout the Cold War. The GDR established the Ministry for State Security, or "Stasi", which aided the Soviet Army in suppressing uprisings in 1953. Until 1989, the GDR was governed by the Socialist Unity Party (SED), though other parties nominally participated in its alliance organisation, the National Front of Democratic Germany.

Deutsche Mark

The  Deutsche Mark  (German pronunciation: [ˈdɔʏtʃə ˈmaɐ̯k], German mark, abbreviated "DM") was the official currency of West Germany (1948–1990) and unified Germany (1990–2002) until the adoption of the euro in 2002. It is commonly called the "Deutschmark" in English but not in German. Germans often say  "Mark"  or  "D-Mark" . It was first issued under Allied occupation in 1948 replacing the Reichsmark, and served as the Federal Republic of Germany's official currency from its founding the following year until 1999, when the mark was replaced by the euro; its coins and banknotes remained in circulation, defined in terms of euros, until the introduction of euro notes and coins in early 2002. The Deutsche Mark ceased to be legal tender immediately upon the introduction of the euro — in contrast to the other Eurozone nations, 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 28 February 2002. However, in 2012, it was estimated that as many as 13.2 billion marks were in circulation, with polls showing a narrow majority of Germans favouring the currency's restoration.