Finnish markka
| Finnish markka | |
|---|---|
|
Suomen markka (Finnish) finsk mark (Swedish) |
|
1983 1 markka
|
|
| ISO 4217 | |
| Code | FIM |
| Denominations | |
| Subunit | |
| 1⁄100 | penni |
| Plural | markkaa (Finnish partitive sg.) mark (Swedish) |
| penni | penniä (Finnish partitive sg.) penni (Swedish) |
| Symbol | mk |
| penni | p |
| Banknotes | |
| Freq. used | 10 mk, 20 mk, 50 mk, 100 mk, 500 mk |
| Rarely used | 1000 mk |
| Coins | |
| Freq. used | 10 p, 50 p, 1 mk, 5 mk, 10 mk |
| Rarely used | 1 p (until 1979), 5 p and 20 p (until 1990) |
| Demographics | |
| User(s) | None, previously: Finland
|
| Issuance | |
| Central bank | Bank of Finland |
| Website | www |
| Valuation | |
| ERM | |
| Since | 14 October 1996 |
| Fixed rate since | 31 December 1998 |
| Replaced by €, non cash | 1 January 1999 |
| Replaced by €, cash | 1 January 2002 |
| € = | 5.94 mk |
|
This infobox shows the latest status before this currency was rendered obsolete.
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The Finnish markka (Finnish: Suomen markka, abbreviated mk, Swedish: finsk mark, currency code:FIM) was the currency of Finland from 1860 until 28 February 2002, when it ceased to be legal tender. The markka was replaced by the euro (€), which had been introduced, in cash form, on 1 January 2002, after a transitional period of three years when the euro was the official currency but only existed as 'book money'. The dual circulation period – when both the Finnish markka and the euro had legal tender status – ended on 28 February 2002.
The markka was divided into 100 pennies (Finnish: penni, with numbers penniä, Swedish: penni), postfixed "p"). At the point of conversion, the rate was fixed at €1 = 5.94573 mk.
The markka was introduced in 1860 by the Bank of Finland, replacing the Russian ruble at a rate of four markkaa to one ruble. In 1865 the markka was separated from the Russian ruble and tied to the value of silver. From 1878 to 1915, Finland adopted the gold standard of the Latin Monetary Union. Up to World War 1, the value of the markka fluctuated within +23%/−16% of its initial value, but with no trend. However, the markka suffered heavy inflation (91%) during 1914–18. Gaining independence in 1917, Finland returned to the gold standard from 1926 to 1931. Prices remained stable until 1940. but the markka suffered heavy inflation (17% annually on average) during the war years and then up to 1951, and again in 1956–57 (11%). In 1963 the markka was replaced by the new markka, equivalent to 100 old markkaa.
Finland joined the Bretton Woods Agreement in 1948. The value of markka was pegged to the dollar at 320 mk/US$, which became 3.20 new mk/US$ in 1963 and devalued to 4.20 mk/US$ in 1967. After the breakdown of the Bretton Woods agreement in 1971, a basket of currencies became the new reference. Inflation was high (over 5%) during 1971–85. Occasionally, devaluation was used, 60% in total between 1975 and 1990, allowing the currency to more closely follow the depreciating US dollar than the rising German mark. The paper industry, which mainly traded in US dollars, was often blamed for demanding these devaluations to boost their exports. Various economic controls were removed and the market was gradually liberalized throughout the 1980s and the 1990s.
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