Europe | How is the end of the East German money

Photo taken in 1969003 from 1948.

The monetary and economic union between West and East Germany marks the end of the East German brand of the time. Today, only the memory of his rapid death and 1.5 billion worthless marks, writes Deutsche Welle

The Berlin Wall falls on November 9, 1989. A few months later, in July 1990, the bank Central East Germany hands over sovereignty over monetary policy and transfers its powers to the West German Bundesbank. This means the sudden demise of the East German brand, and the West German distributor has also become officially available in East Germany.

The money from East German banks is automatically converted into Deutsche Marks. Nearly 17 million East Germans, however, have only six days to turn their savings into Western brands, otherwise they risk losing it.

However, the exchange is not possible in cash – no exchange office is open for this purpose. they have to put their money into an account with a bank to automatically turn them into dice marks. The exchange was made at two exchange rates: each one has the right to exchange 6,000 East German Marks at a rate of 1: 1, and all savings greater than this amount have been exchanged at the rate of 1: 1. 2: 1

Bring together at any price

we explain that the transition to the West German brand is happening so quickly – without the Bundesbank knowing what the real state of the economy is- German, what is its productivity and competitiveness? Economic Expert Professor Wilfried Furman of the University of Potsdam believes that the then Chancellor, Hermut Kohl, wanted quick decisions to make the unification of both Germany irreversible. He wanted to seal this deal at all costs, says Freidman, who is also an expert on monetary policy.

The pbadage to a terminal was made despite the strong economic reserves of the Federal Bundesbank. At the time, according to an exchange rate, it was very generous, according to others, it was a powerful addition to the East Germans, with wages, rents and pensions being recalculated to a rate of 1: 1. And put an upper limit of 6000 mark exchangeable head-to-head is intended to make all the money disappear and to prevent speculators who have inside information from becoming millionaires overnight

. From the outset, the Central Bank of East Germany has a difficult task: the profound changes that have occurred since the end of the Second World War are only the beginning of this hard battle. In fact, then, the country was led by the victors of the war, and the Germans themselves hardly have the word. The former Reichsmark continues to be an official means of payment under the conditions of a thriving black market. In these difficult times, the most important thing is to survive.

After the introduction of the western mark in the western part of the western zone with currency reform, the Soviet Union did the same in its eastern occupation zone. This is how the Deutsche Bank was born and a new currency – the brand of East Germany.

In 1968, the central bank was renamed the State Bank of the GDR. Like most central banks, the RDA is responsible for printing money and must control cash flow. But at the same time, it is directly subordinated to the Ministry of Finance and serves the accounts of official institutions and public enterprises. Another important task is to prevent the emergence of a parallel black currency market in the country.

Although it was always under the control of the government, the central bank of the GDR was subordinated in 1974 to the Council of Ministers, which finally puts an end to the illusions of the bank's independence. With the conclusion of Economic and Monetary Union, the Bank loses all the reasons for its existence and its badets are sold out. And some of its badets – the devalued currency of East Germany, the employees and the archives – were originally transferred to the Staatsbank Berlin and later (in 1994) to the KfW Development Bank [19659007] Silver in East Germany? According to KfW, on the eve of the monetary union in the banks, 620 million tickets worth $ 17.8 billion (East Germany) were deposited. A total of 431 billion East German brands were traded for brand marks – 62 billion at a rate of 1: 1 and the rest at an exchange rate of 2: 1.

it. About 450,000 tons of coins with a nominal value of 640 million marks are melted for the reuse of precious metals, mainly aluminum. Another solution was found for banknotes – they were buried in secret underground tunnels near Halberstadt in the province of Saxony-Anhalt.

Among them are the brand new 200 and 500 brands that have not yet been released circulation. It was then badumed that the high humidity and poor quality of the paper on which the notes were printed would lead quickly to their decomposition. But that does not happen.

After the theft, early in the year 2002, the KfW, responsible for this money, decides to unearth all that remains of the 3,000 tons of buried underground money. All these notes, mixed with old household items, were loaded into trucks and transported to incinerators. A total of 298 courses were made.

The winner takes everything

But that's not all history. Many East German brands are not deposited with banks within six days – 600 million marks and 960 million coins. For this we need to add 900 million brands in 4.4 million private bank accounts, as well as 3.2 billion brands in 74,000 business accounts that are not transformed into West German brands.

In summary, the very fast monetary and economic union not only signed the death certificate of the East German brand, but it also allowed East German citizens to save for billions brands. But for the then Chancellor, Helmut Kohl, it is important to know what is economically feasible, but what will happen in the history books.

Today, from the former central bank of East Germany, we have more than that