Rentenmark

Rentenmark

A temporary currency in Germany in the 1920s. It was introduced in 1923 as part of a successful effort to end the hyperinflation suffered by the papiermark. While it was not pegged to gold as the goldmark was, it was backed by mortgages on real estate and industrial infrastructure. For this reason, the rentenmark effectively served as a bond that was used as currency. The last rentenmarks matured in 1948 but in 1924 the Reichmark became legal tender and was used for most purposes.
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This arrangement mirrored Germany, in which the gold-based rentenmark circulated alongside the floating fiat papiennark, and Russia, where the gold-based chervonets circulated alongside the fiat ruble.
The bank came into existence on 15 November 1923 as the Rentenbank, but with a rentenmark deposit convertible to gold at the prewar value.