Bank of Issue in Poland: Currency and Economy Under Occupation
Following the German invasion and subsequent occupation of Poland, the economic landscape was drastically altered. To maintain control over the money supply and prevent inflation within their own system, the Reichsbank (the central bank of Nazi Germany) opted not to introduce German currency into the region. Instead, the occupation authorities implemented a series of financial maneuvers that stripped Polish citizens of their wealth and established a new, controlled monetary system.
During the initial phase of the occupation, the German government nationalized the assets of various Polish banks and credit institutions, many of which were closed entirely. This period was marked by significant financial loss for the local population, as many people saw their life savings vanish.
The Establishment of the Bank Emisyjny
On December 15, 1939, Hans Frank, the governor of the General Government—the administrative unit overseeing most of occupied Poland—issued a decree to create a new financial entity: the Bank of Issue in Poland, known as the Bank Emisyjny. The bank officially began its operations in April 1940.
In a notable administrative detail, the bank was headed by Feliks Młynarski, a move that received the approval of the Polish government-in-exile.
[ไม่มีภาพประกอบ]Exchange Rates and Economic Exploitation
The monetary system was designed to benefit the German economy while systematically draining the resources of the Polish territory. The official exchange rate was fixed at 2 zlotys (zl) for 1 Reichsmark (RM). This artificial rate served as a tool for economic exploitation.
However, the official rate did not reflect the true market value. A thriving black market emerged where the exchange rate fluctuated significantly, typically ranging between three and four zlotys for every one Reichsmark.
The Iconic 500 Zloty Note
Among the currency issued, the 500 zloty note became the most recognizable. It was colloquially known as the góral (meaning "highlander" or "mountaineer") due to the image of a góral featured on the front of the note. Today, these notes remain highly sought after by currency collectors.
The 500 zloty note played several roles in the social fabric of the occupation:
- Corruption: It became the standard "unit of corruption," serving as the minimum bribe required by occupation officials to facilitate illicit activities.
- Culture: Its role in bribery was immortalized in the Warsaw underground street song "Siekiera, motyka."
- Resistance: The note's nickname inspired Operation Góral in 1943, a daring heist by the Polish resistance who seized a currency shipment valued at over US$1 million at the time.
Despite its official status, the currency suffered from rampant counterfeiting throughout its period of use.
Summary of the Bank of Issue Currency
| Feature | Detail |
|---|---|
| Official Name | Bank of Issue in Poland (Bank Emisyjny) |
| Established | Decreed Dec 15, 1939; Operational April 1940 |
| Official Exchange Rate | 2 zl = 1 RM |
| Black Market Rate | 3 to 4 zl = 1 RM |
| Most Famous Note | 500 zloty ("góral") |
| Circulation Area | General Government only |
| Withdrawal Period | 1944–1945 |
Key Facts
- The Bank Emisyjny was created by decree of Hans Frank to manage the economy of the General Government.
- The official exchange rate was intentionally set to boost the German economy at Poland's expense.
- The 500 zloty note was nicknamed the "góral" and became a symbol of both corruption and resistance.
- Operation Góral was a 1943 resistance heist of currency worth over US$1 million.
- The currency was not used in Polish areas annexed directly by Nazi Germany.
Frequently Asked Questions
Why didn't the Reichsbank introduce the Reichsmark in occupied Poland?
The Reichsbank decided against introducing German currency because it did not want to increase the overall money supply.
What was the "góral" note?
The "góral" (highlander) was the 500 zloty note, named after the image of a mountaineer on its front. It was widely used for bribes and is now a popular collector's item.
What was Operation Góral?
Operation Góral was a 1943 heist carried out by the Polish resistance, during which they captured a shipment of currency valued at more than US$1 million.
Where was the Bank Emisyjny currency used?
The notes were used exclusively within the General Government and were not accepted in the Polish territories that had been annexed by Nazi Germany.
When did this currency stop being used?
The currency notes were withdrawn from circulation between 1944 and 1945.