What is the Deutsche Mark?
The Deutsche Mark is the former unit of currency in Germany in the eleventh century. This monetary unit, which was determined to weigh about eight ounces, was used more as a unit of account than gold and silver at the time, and circulated widely in the Middle Ages, especially for large payments, when silver marks of small size and poor quality were melted down until their silver weight was struck and purified, and these coins were known as common stamps.
In the nineteenth century, coins carried a common mark within Germany that varied from country to country and from country to country in some cases, but in most cases, the gold mark was used. After the First World War, pure German unity weakened, which led to huge inflation and monetary instability, at which point the US dollar became the equivalent of 4.2 billion US marks, and during the Nazi period in Germany, from 1933 to 1945, the Deutsche Mark was the official unit of currency in Germany, with a swastika as the monetary mark
In 1948, the Deutsche Mark advanced to West Germany and then continued to grow until it became one of the world's major currencies, but in doing so, it took the place of the U.S. dollar and the British pound on the global and international markets. As a result, in 1990, the Deutsche Mark became the official unified currency of Germany, but the East German currency became obsolete and was replaced by the West German currency, the Deutsche Mark. In 2002, the Deutsche Mark ceased to be the official currency within Germany and the Euro became the official currency of the country.
Thus, from 1948 to 2002, the Deutsche Mark was considered the official currency of Germany and was replaced by the Euro, the currency of the Deutsche Mark being denoted by the symbol D. In the foreign exchange market it was the DEM, and at the time of the existence of the Deutsche Mark, the currency took the form of banknotes, Deutsche Mark and Deutsche Mark. Deutsche Bundesbank.
Germany's new currency
The euro is the official currency within Germany, as Germany is a member of the European Union, which indicates that the euro refers to the monetary union between the EU member states, which have adopted the euro as the official and only currency of Germany. Therefore, the Board of Directors of the European Central Bank decided to adjust the interest rate on the euro currency.
The German currency before the emergence of the euro
At the outbreak of World War I, the official currency of Germany was the papal mark, equivalent to 100 Feinig, but after the end of World War I, the name of the official currency was changed to the Remark, which was in 1923, but a year later, in 1924, the name was changed again and became the Reichsmark, and in 1948, the Deutsche Mark became the official currency until 2002, when the euro was the official currency.
The Deutsche Mark and it's legacy
Deutsche Mark coins and banknotes continued to circulate in Germany until 2002, before which it was withdrawn from circulation but no longer, but the German Central Bank continued to convert or replace the Deutsche Mark with the Euro, which was previously one of the most stable currencies after other European currencies until 1948 when the Deutsche Mark came into existence after World War II, but the Reichsmark continued to be used within the Western occupation zone.
However, after World War I, support for the Reichswehr stopped until the actual collapse of the Reichswehr, coinciding with the collapse of the German economy, and then most transactions used the barter system, so the Federal Republic of Germany, or West Germany, used the Deutsche Mark in 1949, and then the German economy recovered, which led to hyperinflation at the end of the war period.
It is known that not all European countries use the Euro as their official currency, for example, Poland, except for the German Democratic Republic known as East Germany, but after German reunification in 1990, the Deutsche Mark became the common currency and in 1999 Germany did not use both the Deutsche Mark and the Euro but was replaced by the Euro (EUR) currency.
What is the secret of the Deutsche Mark?
Before the advent of the Euro, the Deutsche Mark was the main currency of Germany and one of its biggest secrets was its rapid spread, which helped stabilize trade transactions. The Euro has been the official currency of the European Union since 1999, after the Deutsche Mark, and since January 1, 2002, coins and banknotes have appeared in the country. on February 28, 2002, the Euro became the official and only currency of more than 12 EU countries, which led to more other countries using the Euro currency, which became the symbol of the Euro symbol. On February 28, 2002, the euro became the official and only currency of more than 12 EU countries, which led to more other countries using the euro currency, which became the symbol of the euro symbol, during the Maastricht Treaty of 1991, an agreement signed by 12 EU member states, the
- United Kingdom.
- France.
- Germany.
- Ireland.
- Italy.
- Belgium.
- Denmark.
- Netherlands.
- Spain.
- Portugal.
- Greece.
- Luxembourg.
The agreement includes the creation of an economic and monetary union that is committed to implementing joint convertibility through the euro currency, but after setting strict laws for the participation of the euro currency in the EMU, among these strict conditions, the annual exchange rate must not exceed 3% of GDP For a country, the debt for one year must be less than 60% of GDP, there must be a stable exchange rate, inflation must not exceed the EU three minimum inflation rates of 1.5% and a long-term rate of Italy and Belgium had debt ratios of over 60%, but the EU executive helped them get out of debt by reducing it.
After the creation of the EU, the European currency, the euro, become a stimulus to trade in other European currencies, which eliminated the volatility of other currencies and lowered prices. In fact, Slovenia became the first country to adopt the euro currency in 2007, then financial stability was achieved after joining the EU in 2004, then Malta and Cyprus adopted the euro currency in 2008, followed by Slovakia in 2009, Estonia in 2011. 2014 Latvia and 2015 Lithuania, so all these countries have official euro currency, in addition to some countries outside the EU, such as Andorra and Montenegro, Kosovo, and San Marino, which are known as members of the EU or eurozone.
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