Austria's Pre-Euro Currency: What Was Used Before 2002?

Austria's currency before 2002 was the Austrian Schilling, which was replaced by the Euro. The Euro was introduced at a fixed rate of €1 = 13.7603 schillings. The Euro is now the official currency of Austria, along with 19 other EU countries.

The Austrian Schilling was the country's currency before 2002

The Austrian Schilling has a long history that dates back to the Carolingian coin reform in 794 AD when it was introduced as a unit of account. Initially, it was only a coin of account, but it later became an actual coin produced in many European countries. The Austrian Schilling was established as the country's currency by the Schilling Act (Schillingrechnungsgesetz) of December 20, 1924, at a rate of one schilling to 10,000 kronen. The first Austrian Schillings were issued on March 1, 1925.

The Austrian Schilling was subdivided into 100 groschen, and the exchange rate to introduce the Euro was fixed at €1 = 13.7603 schillings. This exchange rate made it challenging for people to calculate the value of their money during the transition. The Austrian National Bank (Oesterreichische Nationalbank) continues to exchange Austrian Schilling banknotes and coins for Euros without any time limit.

The Euro is the official currency of the Eurozone, which consists of 19 out of 27 European Union countries. Austria was one of the first countries to adopt the Euro on January 1, 1999, and it introduced Euro banknotes and coins on January 1, 2002, after a three-year transitional period. The Euro is the second-most traded currency globally and offers the benefit of removing exchange rate risk within the Eurozone.

The Euro was introduced at a fixed rate of €1 = 13.7603 schillings

Before the introduction of the Euro, Austria's currency was the Austrian Schilling. The Schilling was first introduced in 1925 and was in use until 1938 when Germany annexed Austria, replacing the Schilling with the Reichsmark. After World War II, the Allied Military reintroduced the Schilling, which remained Austria's official currency until 1999 when it was replaced by the Euro.

Austria was one of the first countries to adopt the Euro on 1 January 1999. However, the Euro banknotes and coins were only introduced in Austria on 1 January 2002, after a three-year transitional period during which the Euro was the official currency but only existed as 'book money'. The dual circulation period, when both the Schilling and the Euro had legal tender status, ended on 28 February 2002.

The Schilling was divided into 100 Groschen

Before the introduction of the Euro in 2002, the official currency in Austria was the Austrian Schilling. The Schilling was first introduced in 1925, replacing the Krone, which was used during the monarchy. The Schilling was abolished in 1938 following Germany's annexation of Austria, when it was exchanged at a rate of 1.50 schillings per Reichsmark. After World War II, the Schilling was reintroduced in 1945 by the Allied Military.

The Austrian Schilling was divided into 100 smaller units of currency called Groschen. The Groschen was issued in denominations of 50, as well as 1, 2, 5, 10, 20, 25, 100, and 1000 schillings. The Groschen was also known as the Kaisergroschen, which translates to "emperor's groschen/groat".

In addition to paper money, the Groschen was issued as coins in denominations of 1, 2, 5, 10, 20, and 50. These coins were introduced between 1947 and 1952, with the 1 and 5 Groschen initially made from leftover blanks from wartime pfennig issues. The 2 and 50 Groschen, along with the 1, 2, and 5 Schilling coins, were struck in aluminium. The 1 Groschen was only minted in 1947, while the 20 Groschen and 2 Schilling coins were discontinued in 1954 and 1952, respectively.

The Schilling remained the official currency of Austria until the introduction of the Euro in 2002. The Euro was introduced at a fixed parity of 1 Euro to 13.7603 Schillings. Although the Euro became the official currency in 1999, Euro coins and banknotes did not enter circulation until 2002. The old Schilling coins and notes were gradually phased out and ceased to be legal tender by February 28, 2002.

The Euro became the official currency in 1999, but physical coins and notes were only introduced in 2002

The Euro is the official currency of Austria and 18 other countries in the European Union. Austria was one of the first countries to adopt the Euro, which came into existence on January 1, 1999. However, physical Euro coins and banknotes were only introduced in 2002.

The Euro's introduction was a watershed moment in Europe's history, with a profound effect on the global economy. The idea of a single European currency had been discussed since the 1970s and became official with the Maastricht Treaty in 1992. The currency's name, the Euro, was adopted in 1995, and on December 31, 1998, 11 countries locked in their exchange rates relative to each other and the Euro.

At midnight on January 1, 1999, the Euro became the official currency of these 11 countries, and their legacy currencies ceased to exist independently. However, during a three-year transitional period, the Euro only existed as 'book money'. Electronic transfers and other non-physical monetary transactions began using Euros, but physical coins and banknotes were not yet introduced. This transition period allowed time for the production and distribution of billions of Euro coins and banknotes.

Austria was one of the countries that took advantage of the dual circulation period, which lasted until February 28, 2002. During this time, both the Schilling, the previous official currency, and the Euro had legal tender status in Austria. The Schilling was replaced by the Euro at a rate of 13.7603 Schillings to 1 Euro.

Finally, on January 1, 2002, Euro banknotes and coins were introduced in Austria and 11 other countries, with a total population of 308 million people. This was the world's largest monetary changeover, impacting not just the general public but also the banking sector, retailers, and the cash-operated machine industry. The introduction of physical Euro currency marked the end of the dual circulation period, and the Euro became the sole legal tender in the Euro area.

The Schilling was first introduced in 1925, then abolished in 1938, and reintroduced in 1945

The Austrian Schilling was first introduced in 1925, abolished in 1938, and then reintroduced in 1945. The currency has a long history, dating back to the Carolingian coin reform in 794 AD. Initially, it was a unit of account consisting of 12 silver pfennigs and was not a physical coin. The first Austrian Schilling was established by the Schilling Act (Schillingrechnungsgesetz) on 20 December 1924, at a rate of one schilling to 10,000 kronen. The first schilling coins were issued in December 1923, in denominations of half schilling, schilling, and double schilling. The introduction of the schilling was part of Austria's economic reconstruction programme following the collapse of the Austro-Hungarian Empire after the First World War.

The first schilling was abolished in 1938 due to Germany's annexation of Austria and was replaced by the German Reichsmark. The schilling was reintroduced after World War II in 1945 by the Allied Military, who issued paper money in denominations of 50 groschen to 1000 schillings. The exchange rate to the Reichsmark was 1:1, limited to 150 schillings per person. The Nationalbank also began issuing schilling notes in 1945, and the first coins were issued in 1946.

In 1947, a second "schilling" law was passed, introducing new banknotes. The earlier notes could be exchanged for new notes at par for the first 150 schillings, and thereafter at a rate of 1 new schilling for 3 old schillings. This reform did not affect the coins. In the 1950s, the schilling was stabilised, with the currency being tied to the US dollar at a rate of $1 = 26 schillings. This link to the US dollar helped pave the way for Austria's membership in the International Monetary Fund.

The schilling was replaced by the Euro in 2002, which was introduced at a fixed parity of €1 = 13.7603 schillings. The Euro became the official currency of Austria in 1999, but the coins and notes were not introduced until 2002. The Oesterreichische Nationalbank (OeNB) will still exchange unlimited amounts of schilling banknotes and coins of the last series into euros indefinitely.

Frequently asked questions