The history of Finnish money

1860 - The Tsar’s manifesto

Tsar Alexander II's manifesto 4 April 1860 which established the markka as Finland's currency. Open a bigger version (pdf, 0.6 Mt)

In December 1859 the Finnish Senate petitioned the Tsar for permission for the country’s own unit of currency noting that the rouble was too large a unit of currency for a poor country such as Finland. The advantages of a smaller unit of currency were understood in St Petersburg and the Senate was charged with examining the matter in greater detail. At a full session of the Senate on March 10th 1860 a decision was made to propose as a unit of currency the markka, which would be a quarter of the value of the rouble and which would be divided into 100 penni. Based on this proposal Tsar Alexander II gave his approval to the new unit of currency on April 4th 1860.

1864 – Minting begins

Silver markka from 1864.

The first silver markka was struck by the Mint on 15.10.1864. Finnish metal coinage was first exchanged for the general public in November 1865 giving rise to crowds of people in front of the head office of the Bank of Finland. At first only copper coins and silver 25 and 50 penni pieces were available. Full nominal value silver coins, or one markka and two markka coins, were not put into circulation until 1.3.1866.

1865 – Finland joins the silver standard

As a result of tough negotiations by J.V Snellman, a manifesto was issued on 8th November 1865 which specified that from that date the silver markka and the silver rouble would become Finland’s legal tender. Banknotes issued by the Bank of Finland would continue to remain in use but their value would be based on the bank’s promise to exchange them for silver when necessary. The Bank of Finland was not obliged to redeem Russian rouble notes. In Russia the venture to return to the silver standard failed, giving rise to an unintended separation of the monetary systems of the two countries. The independence of the monetary system that emerged over the following half century came to be one of the cornerstones of the whole economic autonomy.

1878 - The gold standard

Gold 20 markka coin from 1878.

England was the first country to move to the gold standard in 1817. Most other countries remained with the silver standard but moved over to gold during the 1870s. Securing Finland’s economic development called for a move to the gold standard and this received the Tsar’s approval. Finland moved to the gold standard from the start of 1878, which marked the final independence of the country’s monetary system. Russia did not move to the gold standard until 1897. Because of its adoption of the metal standard, it was easy for Finland to operate on the international capital markets.

1918 - The currency of an independent Finland

Five penni coin from 1918.

The lion coat of arms appearing on the obverse of the coins of the now independent Finland replaced the double eagle of Russia and on the reverse, around the value denomination, the oak leaves were replaced with ears of corn and fir branches representing the Finnish economy.

1963 - Monetary reform

One markka coin from 1964.

In the monetary reform of 1963 the markka was replaced by a new markka with a value of 100 old markka. For a long time afterwards these were referred to as the new markka and the old markka, to make things simpler.

Five markka coin from 1972

2002 - From the markka to the euro

Finnish euro from 2005.

On January 1st 1999 the Finnish markka ceased to be an independent currency. One euro was equal to 5.94573 markka. At the start of 2002, the first euro denominated coins and banknotes were issued. For two months the markka coexisted with the euro until use of money in markka denominations ceased on 28.2.2002.

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