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Currency damage caused by the occupation



HISTORY OF CZECHOSLOVAK CURRENCY.

The German occupying power made perfect use of its monetary policy to exploit the country economically through militarization and price dictation. On the day of the occupation, the koruna ceased to be a separate currency, and in fact - and after the proclamation of the so-called customs union with the "Empire" from October 1, 1940 and legally - became a nominal fraction of the imperial mark. Setting the mark exchange rate at 1 RM = 10 K meant that the Czech koruna was underestimated by 30%, which facilitated the plundering of the Czech economy. Marks, for which the German army, German citizens and German companies bought Czech goods, were taken by the National Bank to the Reichsbank in Berlin and deposited in the so-called Interimkonto without any payment or compensation. At the end of the war, there was a Czech receivable of 15 billion koruna on this account. It thus became an inflationary source of koruna money circulation. Marks, which paid Czech companies for the supply of goods for German customers, especially for the army, were also taken by the National Bank of the Reichsbank to Berlin and concentrated on a special so-called Girokonto, without being fully reimbursed. At the end of the war, this account showed a receivable of 58 billion koruna. It was also a source of koruna inflation. The reserves of monetary gold in the countries occupied by the German government and the rest of the gold reserve, which was left in Prague in 1938, were seized. In total, the looted Czechoslovak monetary gold was 45.5 tons. In 1940, the so-called registrar's contribution was introduced, which the protectorate government had to pay to the Reich Ministry of Finance as a "contribution to German war expenditures." A total of 53.6 billion koruna was paid.
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