East German Mark


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Mark, East German

 

(DM-Ost), the mark of the Deutsche Notenbank, the state bank of the German Democratic Republic (GDR). It equals 100 pfennigs. The East German mark was created in 1948. The mark was substituted for currencies that had circulated throughout Germany: the reichsmark, Renten-mark, and the mark of the Allied Control Council, which had circulated in East Germany from May 1945 until June 1948. The established gold content of the GDR mark in 1953 was 0.399902 g of pure gold. According to the rate of exchange of the Gosbank (State Bank) of the USSR on January 1,1974, 100 marks equaled 40 rubles 50 kopeks.

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For a detailed discussion of the events which led to the unification of Germany and of the problems resulting from "generous" conversion rate of the East German mark and the wholesale take-over of western Germany's legal and institutional framework see OECD, Economic Survey of Germany, 1990 and 1991.
On the road to integration
His turnover in 1983 had been 1.5 million East German marks. This had risen to 6.6 million by 1989.
Golden Ice Crystal awards go to Gerrit de Bruijne and Volkmar Frenzel: QFFI honors two pioneering entrepreneurs of the European frozen food industry. One left the farm to become a major producer of frozen potato products. The other started an ice cream business in the red zone to find that the East was green, but that the West was even greener
The problem, it seems widely accepted, stems from the decision of then-chancellor Kohl to speed up unification by exchanging West German and East German marks at near parity.
The new Germany. (Germany Adrift)
It shows my friends and me as we passed through the infamous Checkpoint Charlie to exchange worthless old East German marks for bottles of champagne.
Travel: Round the clock in Berlin; What's a girl to do, with just 24 hours to explore one of Europe's most fascinating cities? Get a move on, that's what. There was no stopping Gill Williams on her whistle-stop tour of Berlin
There were Yemeni and Iranian riyals; Kuwaiti and Iraqi dinars; West and East German marks; United States and Fijian and Maria Theresa dollars; zlotys; rubles; rupees; shekels; Ecuadorean sucres; Mexican and Chilean pesos; French and Swiss francs; British, Turkish, and Egyptian pounds.
The currency of dreams
Given the partly conflicting targets of minimizing the risk of inflation, strengthening the competitive position of the East German business sector, containing budgetary cost and satisfying the high expectation of East German population, the rates for converting East German marks into D-Marks were seen as a compromise (general conversion rate for financial assets and liabilities of one D-Mark for two East Marks, preferential rate of 1:1 for limited amounts of private savings and for contractual payments such as salaries, wages and rents).
Economic consequences of German unification
Market participants feared that the conversion of East German marks into West German marks would result in a worrisome increase in German monetary aggregates or unleash pent-up demand for German products.
Treasury and Federal reserve foreign exchange operations
Sales were based on East German marks at a supposed exchange rate of 1.3 or less.
With unification celebration over, the hard work has only just begun

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