1948 Germany (Federal Republic) 5 Deutsche Mark Banknote P# 13e Grades vf++. The Deutsche Mark was officially ...

1948 Germany (Federal Republic) 5 Deutsche Mark Banknote P# 13e Grades vf++. The Deutsche Mark was officially introduced on Sunday, June 20, 1948, by Ludwig Erhard. The old Reichsmark and Rentenmark were exchanged for the new currency at a rate of DM 1 = 10 ℛℳ for the essential currency such as wages, payment of rents etc., and DM 1 = 10 ℛℳ for the remainder in private non-bank credit balances, with half frozen. The introduction of the new currency was intended to protect western Germany from a second wave of hyperinflation and to stop the rampant barter and black market trade (where cigarettes were used as currency). Although the new currency was initially only distributed in the three western occupation zones outside Berlin, the move angered the Soviet authorities, who regarded it as a threat. The Soviets promptly cut off all road, rail and canal links between the three western zones and West Berlin, starting the Berlin Blockade. Later in 1948, the Bank deutscher Länder ("Bank of the German States") assumed responsibility, followed in 1957 by the Deutsche Bundesbank. The Deutsche Mark earned a reputation as a strong store of value at times when other national currencies succumbed to periods of inflation.