The Deutsche Bundesbank is still exchanging D-Marks for billions - A review and outlook from the financial expert

The Deutsche Bundesbank is still exchanging D-Marks for billions - A review and outlook from the financial expert

According to a report by www.faz.net,

The dispute over 20.78 D-Marks for the exchange at the Bundesbank led to a marital crisis that even the Bundesbank had to get involved. This shows that Germans have a special relationship with their former currency. The Bundesbank has recorded more than 91,000 successful exchanges of Deutsche Mark into euros this year. Over 53 million D-Marks worth more than 27 million euros were exchanged, and the volume increased for the second time in a row.

The Bundesbank expects further exchanges to take place in the coming years, particularly in connection with the clearing out of inherited houses and apartments. According to Bundesbank board member Burkhard Balz, even 22 years after the introduction of the euro, many D-Mark notes and coins worth billions have not yet been returned. The total value still outstanding at the end of November 2023 was almost 12.2 billion German marks, which corresponds to around 6.24 billion euros. Some of these old banknotes and coins may never be exchanged, for example because they are in the hands of collectors or are believed to be abroad.

The German love of cash was even expressed in the form of a handwritten declaration of love on a banknote that found its way to the Bundesbank. But despite all the emotions and nostalgic attachment, exchanging D-Marks for Euros is still possible. Old holdings can be submitted for exchange free of charge at all 31 Bundesbank branches or by post via the Bundesbank branch in Mainz. The exchange rate was fixed with the introduction of the euro: for 1.95583 D-Mark you get one euro.

The view of cash and the emotions associated with it are of central importance to the financial industry. Germans' sentimentally charged relationship with the Deutsche Mark could continue to impact cash exchanges and possibly even influence payment behavior and currency preferences. It is therefore important to keep an eye on developments and emotions surrounding the D-Mark in order to identify and analyze possible effects on the financial market in good time.