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Auction: 24038 - The Dr. Martin M Mortazavi Collection of Persian Banknotes
Lot: 2

(x) Iran, German Military WWI, 5 Tomans on 20 Mark, 1914 (ND 1916-17), serial number N0581718,
this banknote was issued by the Reichsbank, Germany's central bank from the 1st of January 1876, until the end of World War II in 1945. The bank replaced the Royal Prussian Bank, which had been the central bank of Prussia since 1847. After Germany unified in 1871, the Reichsbank became the main financial authority for the newly unified German Empire, marking a significant milestone in the country's financial history.

These 1916 issue notes were part of a unique series issued during the war, with denominations prominently displayed in red or blue, both spelled out and in numerals. This overprint in Farsi indicates that the notes were intended for use in regions where Persian was spoken, highlighting the complex geopolitical and economic manoeuvres of the period.

These banknotes were circulated briefly in October and November of 1916, and were secured by Turkish gold and Persian silver coins. This backing by foreign currency underscores the strategic alliances and financial arrangements Germany engaged in during the war.

By March 1917, these notes were withdrawn from circulation. Following the end of World War I, any remaining notes were redeemed and destroyed. The remaining notes were collected into storage. For unknown reasons, the storage caught fire and the vast majority of the banknotes was destroyed, making surviving examples exceptionally rare.

The destruction of these notes without the overprint after the war was part of the broader effort to stabilise the German economy and transition to a peacetime financial system. The notes with the overprint were withdrawn after 1917 as Germany and its allies were losing WWI. The remaining banknotes that were stored and caught fire have made surviving examples increasingly rare,

(Pick M3, Rosenberg 488), in PMG holder 45 NET Choice Extremely Fine, repaired, piece added, only 5 notes in higher grade on PMG Census

Subject to 5% tax on Hammer Price in addition to 20% VAT on Buyer’s Premium.

Sold for
£1,100

Starting price
£480