Why the value of german currency (mark) fell?
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hi there
After the versailles treaty Germany's gold reserves were being depleted
Germany then printed large amount of paper currency which lead to hyper inflation
After the versailles treaty Germany's gold reserves were being depleted
Germany then printed large amount of paper currency which lead to hyper inflation
Answered by
8
Value of German currency:
- With the depletion of gold, the German government tried to buy foreign money with German currency, comparable to selling German currency in interchange for payment in foreign currency, but the subsequent increase in the supply of German marks on the market make the German mark to fall rapidly in value.
- At the beginning of World War I, the authorized currency of Germany was the "Papiermark." One mark equated 100 pfennige. After the war, the name of the currency altered to "Rentenmark" (1923), "Reichsmark" (1924), "Deutsche Mark" (1948), and the "Euro" in 2002.
I hope it hellped..
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