What Is the Currency of Germany?
What Is the Currency of Germany? A Guide to the Euro and the Deutsche Mark
If you are planning a trip to Germany, shopping from a German store, or simply wondering what money is used in Germany, the answer is straightforward: Germany uses the euro (€).
The euro has been Germany’s currency for more than two decades. But the story behind German money is much older. Before the euro came the Deutsche Mark, a currency that became closely associated with post-war West Germany and later played an important role in German reunification.
What Is the Currency of Germany?
The official currency of Germany is the euro, abbreviated as EUR and represented by the symbol €.
Germany is one of the countries that use the euro as part of the euro area. The currency is used for everyday purchases, salaries, banking, travel, business transactions, and online payments throughout the country.
Although Germany issues its own euro coins, the euro itself is a shared European currency. German euro coins can be used throughout the euro area, just as euro coins and banknotes from other participating countries can be used in Germany.
When Did Germany Start Using the Euro?
The change to the euro happened in two stages. The euro became the common currency for financial and accounting purposes on January 1, 1999. Euro banknotes and coins, however, did not enter everyday circulation until January 1, 2002.
That distinction is important. When people in Germany remember the actual change from the Deutsche Mark to the euro, they are usually thinking about the beginning of 2002, when euro cash appeared in wallets, cash registers, banks, and ATMs.
The official conversion rate was fixed at €1 = 1.95583 Deutsche Mark. The Deutsche Mark remained in circulation alongside the euro during the transition period, and the euro became the sole legal tender in the euro area on March 1, 2002.
Euro Banknotes Used in Germany
Euro banknotes are standardized across the euro area. The original series included seven denominations: €5, €10, €20, €50, €100, €200, and €500.
The €500 banknote is an important detail to understand today. It was part of the original series and remains legal tender, but it is no longer being produced or issued. The current Europa series contains banknotes from €5 through €200.
The different denominations are easy to distinguish by their size and color. Modern euro banknotes also include a range of security features designed to make counterfeiting more difficult.
Euro Coins in Germany
Germany uses the standard eight euro coin denominations: 1 cent, 2 cents, 5 cents, 10 cents, 20 cents, 50 cents, €1, and €2.
One of the interesting things about euro coins is that they have both a common European side and a national side. The common side shows the denomination, while the national side identifies the country that issued the coin.
German euro coins feature three different national designs. The 1-cent, 2-cent, and 5-cent coins show an oak leaf. The 10-cent, 20-cent, and 50-cent coins feature the Brandenburg Gate in Berlin. The €1 and €2 coins carry the German federal eagle.
Despite these different national designs, all regular euro coins can be used for cash payments throughout the euro area.
Why Does Germany Have Its Own Euro Coin Designs?
The euro is a shared currency, but participating countries are allowed to choose their own national designs for the country-specific side of their coins.
This gives German euro coins a distinctly German appearance while keeping them part of the common European currency system. It is also why a German €2 coin may look different from a €2 coin issued by France, Italy, Spain, or another euro-area country.
Collectors often pay particular attention to these national designs and to commemorative euro coins, which can feature historical figures, buildings, anniversaries, and other subjects connected with Germany.
What Was Germany’s Currency Before the Euro?
The currency most closely associated with modern Germany before the euro was the Deutsche Mark, usually called the D-Mark or simply DM.
The Deutsche Mark was introduced in the western occupation zones in June 1948, replacing the Reichsmark. The currency reform was one of the major economic changes in post-war Germany and helped establish a new monetary system in West Germany.
For several decades, the D-Mark became closely associated with monetary stability and with West Germany’s post-war economic development. It remained the currency of the Federal Republic of Germany until the introduction of the euro.
The Deutsche Mark and German Reunification
The history of the Deutsche Mark became particularly significant during German reunification in 1990.
Before reunification, East Germany used its own currency, the Mark der DDR. On July 1, 1990, the Monetary, Economic, and Social Union between East and West Germany took effect. The Deutsche Mark became the sole legal tender in the German Democratic Republic, just three months before reunification.
The conversion was more complicated than a simple one-to-one exchange. Wages, salaries, pensions, rents, and other recurring payments were generally converted at 1 Mark der DDR to 1 Deutsche Mark. Bank balances and cash holdings, however, were subject to different rules.
For personal cash and bank balances, certain amounts could be converted at the favorable 1:1 rate according to age. Children up to age 14 could convert up to 2,000 Mark der DDR at 1:1. People between 15 and 59 could convert up to 4,000 Mark, while those aged 60 and over could convert up to 6,000 Mark at the same rate. Amounts above these allowances were generally converted at 2:1, meaning that two East German marks became one Deutsche Mark.
The conversion of cash and bank balances was handled through accounts at financial institutions in East Germany rather than by simply handing large amounts of cash to an exchange counter. The rules also distinguished between residents of East Germany and people or organizations based elsewhere.
Certain balances belonging to individuals or organizations without a permanent residence or headquarters in East Germany were subject to a 3:1 conversion rate when the relevant balances had been created after December 31, 1989. This was one of several provisions designed to prevent people from taking advantage of the monetary conversion rules.
The practical scale of the change was enormous. In preparation for July 1, the Deutsche Bundesbank brought approximately 440 million banknotes and 102 million coins into East Germany and established 15 temporary branches there to help distribute the new currency.
For many East Germans, receiving Deutsche Mark was about much more than changing the money in their wallets. The D-Mark was a highly visible symbol of economic and political change and of the approaching reunification of Germany. On October 3, 1990, German reunification formally took place.
The Deutsche Mark Changed Everyday Life in East Germany
The introduction of the D-Mark also brought immediate changes to everyday life. People in East Germany suddenly had access to a currency that could be used in the West and that was widely trusted for its purchasing power.
At the same time, the monetary union exposed East German businesses to direct competition from West German and international companies. Many East German companies struggled to compete in the new market economy, and the economic consequences of the rapid transition were profound.
This makes the 1990 currency change an important part of German history. It was not simply a technical change of banknotes. Money became one of the most visible ways in which the economic systems of East and West Germany were brought together.
What Happened to the Deutsche Mark?
When Germany changed to the euro in 2002, the Deutsche Mark ceased to be legal tender. But it did not completely disappear.
Germany’s central bank, the Deutsche Bundesbank, still exchanges eligible Deutsche Mark banknotes and coins for euros at its branches without a time limit. The official conversion rate remains €1 for 1.95583 DM.
This means that old D-Mark notes and coins can still have a practical value even though they can no longer be used to pay for goods in German stores.
Older German Currencies
The Deutsche Mark was not Germany’s first modern currency. Before it came the Reichsmark, introduced in 1924 after the period of extreme inflation that followed World War I.
Earlier German monetary history is even more complicated because Germany was made up of many individual states and territories before national unification in 1871. Different regions issued their own currencies and coins, making the monetary landscape very different from today’s unified euro system.
This history is one reason German coins and banknotes are interesting to collectors. They reflect not only changes in money, but also the political and economic changes that shaped Germany itself.
What Currency Will You Need in Germany?
If you are visiting Germany today, you will need euros for cash purchases. Credit cards, debit cards, and mobile payment methods are also widely used, although cash remains useful in some smaller businesses, markets, cafes, and other everyday situations.
For travelers from the United States, prices in Germany are displayed in euros rather than US dollars. Your bank or card provider handles the currency conversion when you make a payment from a dollar-based account.
There is no separate German currency that you need to look for. A German €2 coin, a French €2 coin, or an Italian €2 coin all belong to the same euro currency and have the same face value.
Germany’s Currency Has a Long Story
Germany’s currency may be the euro today, but the country’s monetary history tells a much bigger story. The Deutsche Mark was introduced during the difficult years after World War II, became associated with West Germany’s economic development, became the common currency of East and West Germany in 1990, and was eventually replaced by the euro.
Today, the euro combines that German monetary history with a much broader European system. German euro coins still carry familiar national symbols such as the federal eagle, the Brandenburg Gate, and the oak leaf, while the currency itself is shared across much of Europe.
So if someone asks, “What is the currency of Germany?”, the short answer is simply the euro. The longer answer is a story that connects modern Germany with its recent history and with the wider development of Europe.
Frequently Asked Questions About Germany’s Currency
What is the official currency of Germany?
Germany’s official currency is the euro (€). It is the country’s sole official currency and is used for everyday payments throughout Germany.
When did Germany start using the euro?
The euro became Germany’s currency for accounting and financial purposes on January 1, 1999. Euro banknotes and coins entered everyday circulation on January 1, 2002. The euro became the sole legal tender in the euro area on March 1, 2002.
What was Germany’s currency before the euro?
The Deutsche Mark, commonly called the D-Mark or DM, was the currency used in West Germany from 1948. It became the currency of East Germany as part of the Monetary, Economic, and Social Union on July 1, 1990, and was eventually replaced by the euro.
What was the exchange rate between the East German mark and the Deutsche Mark in 1990?
There was no single exchange rate for every type of money. Wages, salaries, pensions, rents, and other recurring payments were generally converted at 1:1. Personal cash and bank balances were subject to age-based allowances for 1:1 conversion, with amounts above those limits generally converted at 2:1. Certain non-resident balances were subject to different rules.
What was the fixed exchange rate between the Deutsche Mark and the euro?
The official fixed conversion rate was €1 = 1.95583 Deutsche Mark.
Can Deutsche Mark still be exchanged for euros?
Yes. Eligible Deutsche Mark banknotes and coins can still be exchanged for euros at Deutsche Bundesbank branches without a time limit and at the official conversion rate of €1 = 1.95583 DM.
What euro coins are used in Germany?
Germany uses 1-cent, 2-cent, 5-cent, 10-cent, 20-cent, 50-cent, €1, and €2 coins. German coins have national designs featuring the oak leaf, Brandenburg Gate, and German federal eagle.
Are €500 banknotes still used in Germany?
€500 banknotes from the first euro series remain legal tender, but they are no longer produced or issued. The current Europa series does not include a €500 denomination.
Further Reading:
Deutsche Bundesbank: Deutsche Mark Banknotes and Coins
Deutsche Bundesbank: Euro Banknotes
German Federal Government: The Deutsche Mark Becomes Legal Tender in East Germany
Treaty on the Creation of a Monetary, Economic and Social Union between West and East Germany
European Central Bank: Current Euro Banknotes
