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German Rentenmark
From Wikipedia, the free encyclopedia
The Rentenmark (RM) was a currency issued on 15 November 1923 to stop the hyperinflation of 1922 and 1923 in Germany. It was subdivided into 100 Rentenpfennig.
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The Rentenmark replaced the Papiermark. Due to the economic crises in Germany after the Great War there was no gold available to back the currency. Therefore the Rentenbank, which issued the Rentenmark, mortgaged land and industrial goods worth 3.2 billion Rentenmark to back the new currency. The Rentenmark was introduced at a rate 1 Rentenmark = 1:1012 Papiermark, establishing an exchange rate of 1 United States dollar = 4.2 RM.
The Rentenmark was only an intermediate currency and was not legal tender. It was, however, accepted by the population and effectively stopped the inflation. The Reichsmark became the new legal tender on 30 August 1924, equal in value to the Rentenmark.
The monetary policy spear-headed by Hjalmar Schacht - the Central Banker - together with the fiscal policy of German Chancellor Gustav Stresemann and Finance Minister Hans Luther brought the inflation in Germany to an end.
The Rentenbank continued to exist after 1924 and the notes and coins continued to circulate. The last Rentenmark notes were valid until 1948.
Coins were issued in denominations of 1, 2, 5, 10 and 50 Rentenpfennig, with a first issue of banknotes in denominations of 1, 2, 5, 10, 50, 100, 500 an 1000 Rentenmark. The coins were dated 1923, 1924, 1925 and 1929, with the notes dated 1923. Later issues of notes were 10 and 50 Rentenmark (1925), 5 Rentenmark (1926), 50 Rentenmark (1934) and 1 and 2 Rentenmark and dated 1937.
| Preceded by: German Papiermark Ratio: 1 Rentenmark = 1,000,000,000,000 Papiermark, and 4.2 Rentenmark = US$1 |
Currency of Germany 15 November 1923 – 29 August 1924 |
Circulates in Germany 30 August 1924 – 1948 Note: Reichsmark was the legal tender |
Succeeded by: East German Mark Reason: reaction to the change over in Trizone (later West Germany) Ratio: 1 Mark = 7 Rentenmark on the first 70 Rentenmark for private individuals, otherwise 1 Kuponmark = 10 Rentenmark |
| Succeeded by: Deutsche Mark Reason: intended to protect West Germany from the second wave of hyperinflation and stop the rampant barter and black market trade Ratio: 1 Deutsche Mark = 1 Rentenmark for first 600 RM, 1 Deutsche Mark = 10 Rentenmark thereafter, plus each person received 40 Deutsche Mark |