Greek Currency in World War II: Inflation, Occupation, and the Drachma’s Struggle
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Greek Currency in World War II: Inflation, Occupation, and the Drachma’s Struggle
During World War II, Greece’s currency became both a symbol of national resilience and a casualty of economic collapse. The drachma, once stable under the Metaxas regime, faced unprecedented pressure as war, occupation, and hyperinflation reshaped its role in daily life and numismatic history.
Pre-Occupation Stability
Before the war, Greece maintained fiscal discipline. Under Ioannis Metaxas, the government ran budget surpluses, and the drachma held its value. This changed abruptly in October 1940, when Italy invaded Greece. To fund the Albanian campaign, the government borrowed heavily from the Bank of Greece, increasing the volume of banknotes by 72% in just six months.
Axis Occupation and Currency Collapse
From April 1941 to October 1944, Greece was occupied by German, Italian, and Bulgarian forces. The occupiers divided the country into zones, restricted movement, and plundered resources. The Bank of Greece was forced to print money to meet occupation demands, while Italian and German military currencies circulated alongside the drachma.
This led to one of the longest hyperinflation episodes in recorded history. Prices soared, and the drachma’s purchasing power evaporated. By 1944, denominations reached billions—notes like the 100 million and 2 billion drachmai became tragically common.
Symbolism and Survival
Despite economic collapse, Greek banknotes from this period carry powerful symbolism. The 1944 1 Drachma note, for example, features the phoenix—an emblem of rebirth—reflecting the nation’s hope for recovery. These notes are compact, often crudely printed, yet rich in historical context.
Why Collect WWII Greek Currency?
Collectors value these notes not for rarity, but for narrative. They represent:
Wartime resilience and national identity
The impact of occupation on monetary systems
Transitional designs and emergency printing
A cautionary tale of inflation and economic fragility
At Notescounter, we document each note with catalog numbers, issue details, and historical background—ensuring collectors understand not just what they hold, but why it matters.
