The main pre-euro currencies
German mark (Deutsche Mark, DEM)
The Deutsche Mark was introduced in West Germany in 1948 and became one of the world’s most respected currencies due to the Bundesbank’s commitment to price stability. Following German reunification in 1990, the West German Deutsche Mark replaced the East German mark at a one-to-one rate for most transactions. When the Berlin Wall fell, the Deutsche Mark was so trusted that it was effectively used as an informal currency across parts of Eastern Europe. It was converted to euros at the fixed rate of DEM 1.95583 to EUR 1.
French franc (Franc francais, FRF)
The French franc has a history stretching back to 1360, when it was first minted as a gold coin to ransom King John II of France. By the 20th century, it had survived both World Wars, periods of hyperinflation and the creation of a ‘new franc’ in 1960 (worth 100 old francs). The franc was a member of the Latin Monetary Union (1866-1927), an early European attempt to stabilise exchange rates. It was converted to euros at the rate of FRF 6.55957 to EUR 1. Francs remained exchangeable at French banks until 17 February 2005.
Italian lira (Lira italiana, ITL)
The Italian lira traces its origins to the Roman libra weight and was formally introduced in 1861 during Italian unification. By the 1970s, Italy’s chronic inflation had eroded the lira to the point where everyday transactions required thousands of lire. A cup of coffee might cost 1,000 lire; a mid-range car might cost 20 million. The lira was converted to euros at the rate of ITL 1936.27 to EUR 1. Notes and coins ceased to be legal tender on 28 February 2002, and the Banca d’Italia continued to honour exchange at the fixed rate until 2012.
Spanish peseta (Peseta, ESP)
The Spanish peseta was introduced in 1868 during a brief period of political instability. It survived for over 130 years, including the Francisco Franco dictatorship (1939-1975), and was converted to euros at the rate of ESP 166.386 to EUR 1. Following Franco’s death, Spain modernised rapidly and joined the European Exchange Rate Mechanism (ERM) in 1989, setting it on course for eurozone membership.
Dutch guilder (Gulden, NLG)
The Dutch guilder was one of Europe’s oldest and most stable currencies, with origins in the 13th century. The Netherlands was known for its monetary credibility, and the guilder-German mark relationship was particularly close, with the Dutch National Bank often mirroring Bundesbank policy. The guilder was converted at NLG 2.20371 to EUR 1.
