Hungarian korona

Infobox Currency
currency_name_in_local = magyar korona hu icon coroană ro icon Ungarische Krone de icon koruna sk icon круна sr icon коруна uk icon
image_1 = HUK 1000 1920 obverse.jpg
image_background_1 = black
image_title_1 = 1000 korona
(obverse)
image_2 = HUK 5 korona 1922 probe reverse.jpg
image_background_2 = black
image_title_2 = 5 korona
trial strike
(reverse)
using_countries = Hungary
subunit_ratio_1 = 1/100
subunit_name_1 = fillér
symbol = K, kr
used_coins = 1, 2, 10, 20 fillér, 1, 2, 5, 10, 20, 100 korona
used_banknotes = 1, 2, 10, 20, 50, 100, 500, 1000, 5000, 10 000, 25 000, 50 000, 100 000, 500 000, 1 000 000 korona
banknote_article = Paper money of the Hungarian korona
issuing_authority = Hungarian Royal State Note Issuing Institute
printer = Orell Füssli (Zürich) Hungarian Banknote Printing Corp. (Budapest)
mint = Hungarian Mint Ltd.
obsolete_notice = 31 December 1926

The Hungarian korona (Hungarian: "magyar korona"; "korona" in English is "crown") was the replacement currency of the Austro-Hungarian Krone/korona amongst the boundaries of the newly created post-WWI Hungary. It suffered a serious inflation and was replaced by the pengő in 1925. The last korona banknotes were withdrawn from circulation in 1927.

Introduction

According to the Treaty of Trianon and other treaties regulating the situation of countries emerging from the ruins of the dissolved Austro-Hungarian Empire, the former banknotes had to be overstamped by the new states and - after a given transition-period - replaced by a new currency. In the case of Hungary, this currency was the korona, which replaced its Austro-Hungarian counterpart at par. Hungary was the last country to fulfil the replacement obligation of the treaties and the stamps used for overstamping were very easy to copy, so a large portion of the common currency circulated in Hungary. This was a factor contributing to the process which finally led to a serious inflation. Finally, in 1925, the korona was replaced by the pengő at a rate of 12,500 korona = 1 pengő.

Coins

Körmöcbánya (today: Kremnica, Slovakia), the site of the only mint of Hungary (since the Gyulafehérvár mint in Transylvania (today: Alba Iulia, Romania) was closed in 1871) was awarded to the newly created Czechoslovakia according to the Treaty of Trianon. Thus, the mint machinery was moved to Budapest and set up at different places until the Hungarian State Mint was created.

Only 10 and 20 fillér coins were minted as part of the korona system: first in 1919 under the Soviet Republic with the original Körmöcbánya coin dies (1916 and 1918 restrikes); then in 1920 and 1921 with the correct years of minting but still using the same design and the K.B. Körmöcbánya mintmark.

Paper money

The first paper money printed in Hungary were 1, 2, 25 and 200 korona banknotes - similar to those issuead in Vienna during the end of the war. However, the use of these banknotes was limited to Austria and Hungary, and later even Austria considered the Hungarian issues to be counterfeights. Later, as there was no national bank in Hungary, the Postal Savings Bank received the right to print bills denominated 5, 10 and 20 korona. The overstamping of the banknotes of the Austro-Hungarian Bank started only in 1920 - the last of all states emerged on the ruins of the former Monarchy. Finally, the Hungarian Royal State Note Institute was founded and granted the right to issue treasury notes.

Further reading

* en icon de icon cite book | author=Gyula Rádóczy, Géza Tasnádi | title=Magyar papírpénzek 1848-1992 (Hungarian paper money 1848-1992) | publisher=Danubius Kódex Kiadói Kft | year=1992 | id=ISBN 963-7434-11-9
* (summary in de icon en icon ru icon) cite book | author=Károly Leányfalusi, Ádám Nagy | title=A korona-fillér pénzrendszer - Magyarország fém- és papírpénzei 1892-1925 (The korona-fillér monetary system - coins and paper money of Hungary 1892-1925) | publisher=Magyar Éremgyűjtők Egyesülete, Budapest | year=2006 | id=ISBN 963-229-523-4